Assets Management Agency Draft Approved

Draft legislation to set up the controversial National Assets Management Agency (NAMA) has been approved.

Ministers today finally signed off the legislation after a three-hour meeting looking at the establishment of the agency, which will responsible for taking control of back debts and toxic loans.

The draft approvals were made at the last Cabinet meeting before the summer break, and the early legislation is to be published on Thursday.

However, the planned work and role of the agency is not without its critics, with Fine Gael claiming the plans are "guided by panic".

Speaking as the Cabinet discussed the NAMA legislation, Fine Gael's Richard Bruton warned that the Government's proposal was putting short-term concerns ahead of the long-term future of the country.

"Panic today and misplaced optimism that tomorrow will look after itself should not guide this massive step," he said.

The opposition minister added: "It is not surprising that this shell-shocked Government is terrified of another liquidity crisis for Irish banks. But it cannot allow itself to be panicked into a solution that might save the banks now, only to hobble the country for the next ten years."

The next meeting of the Cabinet is expected to be held on 26 August, while the Dáil is due to return in mid-September to debate the legislation.

Government sources have stressed the importance of NAMA as the centrepiece of plans to solve the banking crisis.

(DW/BMcc)