Abstract
This chapter describes the operations of the National Asset Management Agency (NAMA), established by the government to take over and manage the ‘toxic’ debts of Irish banks and which became one of the largest owners and managers of property in the world. It outlines the context of the property market and banking crisis which led to the government rescue of the Irish banking system. The financial and market implications of the NAM A process as presently constructed are examined. This includes consideration as to whether the cost to the taxpayer can be contained and the individual sector and spatial development impacts of ongoing decisions. After the prime overseas investment assets are disposed of, the next stages of the NAMA process from 2013 onwards involves dealing with the core problem of the many marginal development-land transactions in Ireland conducted during the final stages of the property market boom. The chapter examines whether this might involve increased costs and risk exposures for the taxpayer due to pricing issues, the lack of transparency in operations and the absence of public scrutiny of major decisions. The fact that many of the development-land deals have involved a relatively closed circle of related interest groups suggests a high level of risk to the exchequer and that the potential for significant financial loss may arise. Financial and development interests may wish the state to subsidise and reflate the property market to previous levels. However, this may neither be a feasible outcome nor in the public interest.
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© 2014 Brendan Williams
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Williams, B. (2014). Bailing Out the Banks: The Role of the National Asset Management Agency. In: MacLaran, A., Kelly, S. (eds) Neoliberal Urban Policy and the Transformation of the City. Palgrave Macmillan, London. https://doi.org/10.1057/9781137377050_9
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DOI: https://doi.org/10.1057/9781137377050_9
Publisher Name: Palgrave Macmillan, London
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