Just over a year since the Lehman Brothers filed for bankruptcy causing financial shock waves throughout the world, with the crest of these shock waves forcing Ireland into a deep recession, the Government’s legislative resuscitation for our economy, through the establishment of the National Asset Management Agency to purge the five financial institutions in the country — AIB, Anglo Irish Bank, Bank of Ireland, EBS Building Society and Irish Nationwide – of toxic loans which were incurred during the property boom, has begun.
As many of us are sick of the continuous political ideologies being thrashed around as a resolution to the recession, the debate around the four-letter acronym NAMA is one of the most crucial Dáil debates in our country’s history and will become synonymous with our financial future as the ramifications of what NAMA proposes to do will be felt by us for the remainder of our lives like “shards of glass stuck in the taxpayer for generations”, as described by Fine Gael finance spokesperson Richard Bruton.
Minister of Finance Brian Lenihan outlined to the Dáil on Wednesday, in his “page of shame” (according to Labour finance spokeswoman Joan Burton ) how the State purchasing €77 billion of toxic loans for €54 billion will allow the banks to once more be in a position to lend, thus stimulating economic growth, while the banks “should be extremely grateful for the continued support and forbearance extended by the citizens”.
Grateful, forebearance — what feeble language to describe the utter dismay, infuriation, and frustration the citizens of Ireland actually feel towards the banks, which was evident with the crowds of protesters who gathered outside the Dáil on Wednesday.
Mr Lenihan assured the nation that the role of NAMA is not a bail-out for the banks and hopefully his statement that those responsible for these enormous debts will be pursued, as this is the only vindication that Irish citizens actually want and deserve.
As the restoration and repair of credit begins and banks will once more in a position to lend, let’s hope that local businesses will once again be able to access credit to help “protect and create jobs” which will keep us steadfast. However NAMA’s calculations are pretty risky and based on a guessing game — on the hope that property prices have reached rock bottom and will rise in the near future. However Mr Lenihan assures us though that “a greater risk is paralysis and delay”.
Whatever the outcome, we will bear the crux of these debts most certainly for the duration of our lifetimes and perhaps these debts will span into future generations. Further taxation and cutbacks in public spending are a given.
As stock markets opened on Thursday morning Irish bank shares rose sharply. Is this the first indication of a confident start on the long road to recovery or has the Government, as stated by Sinn Féin finance spokesperson Arthur Morgan TD, just committed “the crime of the century”, which we will all serve the financial sentence for?
Geraldine Carr [email protected]
