Incorrect Irish bank data could have cost exchequer €20-bn
14 Jan 2011
Appearing before Ireland's Public Accounts Committee, the heads of the nation's 'toxic' bank National Assets Management Agency (Nama) said yesterday if Nama had accepted the information provided by the Irish banks, that would have cost the nation €20 billion in overpayments.
The committee has criticised Nama for not passing on inaccurate information provided by banks in 2009 about the value of their property loans to relevant authorities.
Nama chairman Frank Daly said the agency did not provide the details of the information to relevant authorities at the time, but said it would now co-operate fully with an investigation into the matter.
Nama CEO Brendan McDonagh said, "Nama would have been, from day one, €20 billion under water had we paid banks the money.''
That would have benefited bank's shareholders and bondholders, he further said.
Nama was created by the Irish government in 2009, to deal with the financial crisis triggered by the nation's property bubble burst.
