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Thu 09 Sep 2009The Nama project

THE PARAMETERS under which the National Asset Management Agency will operate have become clearer with the publication by the Government of the price it will pay for the Irish banks’ bad property loans. The figures are eye-watering.

Taxpayers will pay €54 billion for loans valued on the bank books at €77 billion. The current market value of the loans, by the Government’s estimate, is €47 billion, meaning that taxpayers are deliberately overpaying by some €7 billion to cushion the impact on the banks’ battered balance sheets of absorbing their property-related losses.

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