Government publishes Nama amendments

The Government has tonight published a series of proposed amendments to the National Asset Management Agency (Nama) Bill agreed at its Cabinet meeting yesterday.

While the bulk of the changes are technical in nature, there are some significant alterations proposed.

The Government is seeking to make legislative changes which would appear to pave the way for State support for Irish Nationwide and the Educational Building Society.

Under the amendment to the Building Societies Act 1989, if the Government invests in a building society, it would now receive a “Golden Share” in return, which would give the Minister for Finance special privileges designed to protect the taxpayers’ interests.

These would include the power to appoint directors and block or approve resolutions. The issue of such a share would have to be approved by a society's members.

“I welcome the passing of Second Stage of the Nama Bill in the Dáil,” Mr Lenihan said in a statement. “The Government now proposes to improve the text of the Bill to ensure that Nama can achieve its objectives of stabilising the banking system and supporting economic recovery.”

Other major amendments include a limit of €54 billion on the issuance of securities in respect of acquisition by Nama of bank assets. This can be subsequently amended by a Dáil resolution.

Mr Lenihan said a new provision will require borrowers “to co-operate and act in good faith with participating institutions during the preparation for the transfer of loans”.

He said this should improve the accuracy of information provided and the efficiency of the transfer process.

Mr Lenihan said during his speech in the Dáil this week the Bill would be amended to ensure that the maximum amount to be paid to a participating bank in subordinated debt is 5 per cent of the aggregate amount due to that institution.

Earlier today, the Labour Party today tabled some 56 amendments to the agency. Finance spokeswoman Joan Burton said the changes were designed to increase supervision by the Oireachtas of the agency and place some restrictions on the “otherwise limitless powers” given to the Minister for Finance.

They would also ensure greater transparency, provide additional protection for the taxpayer and reopen the flow of credit to small businesses. Labour is also seeking a two-year moratorium on applications for repossession orders on family homes by participating financial institutions.

Fine Gael yesterday published 99 amendments to Nama, including a new home-owner support scheme proposal, which it claimed would protect up to 25,000 Irish families whose homes may be threatened by the downturn.

Sinn Féin said yesterday it was also publish up to 30 amendments today.

The Nama Bill will be introduced at Committee Stage in the Dáil next week.