Stricter criteria to be applied to loan book sales by NAMA – Creed

Fine Gael TD for Cork North West, Michael Creed, has called for a review of how developer loan books are sold by NAMA, giving consideration to future development plans and what is in the public’s best interest.

“As it stands, developer loan books are sold to the highest bidder and while this does benefit the exchequer, additional criteria should be applied by NAMA to ensure that development plans will benefit the public. This is particularly relevant to urgently delivering building infrastructure which is seriously out of kilter with public demand in our major urban centres.

“The Department of Finance has promised retrospective legislation to protect individual mortgage holders on the sale by IBRC of the Irish Nationwide loan book and I believe that similar action should be taken to protect public interest in the sale of developer loan books by NAMA.
“The High Court ruling in the O’Flynn construction case this week has raised serious issues about the sale of developer loan books by NAMA and the political direction needed to accelerate the NAMA wind down. It has highlighted the need to think about what will happen to the property after it is sold.

“Clearly there is a value to be had in the sale of these loan books and there is no shortage of willing investors. However, without clear criteria insisted upon by NAMA and the state, it appears the public interest is secondary to that of investors after a quick profit.”