EU Commission approval of NAMA an endorsement of Government’s handling of banking crisis - McGrath

Cork South Central Fianna Fáil T.D. and Vice Chairperson of the Oireachtas Committee on Finance and the Public Service, Michael McGrath, has welcomed the EU Commission’s approval today of NAMA.

"The approval by the European Commission of NAMA is an endorsement of the Government's policy to establish an asset management agency as an important element of our plan to address the crisis in our banking system. NAMA will help to cleanse the balance sheets of our main banks and will help to ensure we have a banking system which meets the needs of our economy.

“Significantly, the EU Competition Commissioner Joaquin Almunia has agreed that taking action in this way is key to cleaning up the balance sheets of our banks. It is important to reassure the public that several safeguards are built in to the NAMA plan to protect the interests of the taxpayers. Of course there are risks associated with NAMA, but the risks of doing nothing are far greater.”

"NAMA will significantly improve the funding position of our banks and will create an environment where an appropriate level of lending can be provided to the economy. In addition, the NAMA legislation specifically extends to the Minister for Finance the power to issue binding guidelines to the banks on lending to the economy.

Deputy McGrath also added that the green light from the Commission shows that Fine Gael was wrong to object to the Government’s plans.

“The EU approval for the plan shows that Fine Gael was wrong to try to delay the process with its 20 page, formal complaint to the EU Commission last year. Fine Gael's attempts to stall the plan were most certainly not in the national interest. The opposition are more interested in generating hysteria about the banking crisis than they are in resolving it.”

“Despite the lack of support from the opposition, the Government can now proceed with the EU-approved NAMA plan with a view to returning stability to our banking system. This is an essential milestone on the road to economic recovery.”

"I would like to pay a warm tribute to Minister Brian Lenihan TD for the enormous work he has carried out in recent months to get NAMA up and running. He has shown a single-minded determination to resolve the crisis in our banking system and he deserves all of our support for that,” concluded Michael McGrath TD.