Wilson meets with Lenihan to discuss NAMA

Finance Minister, Sammy Wilson, today met with Irish Finance Minister, Brian Lenihan to discuss the emerging proposals for a National Asset Management Agency (NAMA) in the Republic of Ireland.

At the meeting Minister Wilson outlined his concerns about the importance of managing carefully the disposal of any stressed bank assets in Northern Ireland to contain the risk of any detrimental impacts upon the local property market and wider economy.

Speaking after the meeting, he said: “I welcome this opportunity to meet with Brian Lenihan to discuss the development of NAMA. While the role of NAMA is of critical importance to the Irish economy, I have stressed to him the importance of also carefully managing asset disposals to ensure that local Northern Ireland interests are protected.”

Initial estimates suggest that the value of loans NAMA might take over could be in the region of €90billion, with a considerable element of that being located in the UK, much of it in Northern Ireland. Minister Wilson used the meeting to underline his concerns at the impact on the Northern Ireland economy of any large scale move to sell these assets off quickly.

The Minister said: “NAMA will obviously have some influence over the management and possible disposal of significant assets located within Northern Ireland, most notably land and development assets. It is imperative that this management adopts a prudent and considered position to ensure the long term interests of the Northern Ireland economy, and indeed that of the Republic of Ireland, are protected.”

To safeguard Northern Ireland’s interests Minister Wilson proposed that the Northern Ireland Executive should have a formal role in taking forward NAMA.

Notes to editors:

1. The Department of Finance in the Republic of Ireland published draft NAMA legislation on 30th July 2009. There are currently no details of the Northern Ireland ‘asset exposure’ within the anticipated €80- €90 billion NAMA book valuation, but it is believed that a significant element has a locus in Northern Ireland. The key concern from a Northern Ireland perspective is that if Northern Irish assets were to be disposed of first, this could have a highly negative impact on the local property market.
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