NAMA is the National Assests Management Agency. They were set up last year by the Irish Government to absorb any bad debt in the banks. Such as big developers that borrowed too much money and now can't afford to pay it back. NAMA will take their property and the debtor and manage it themselves or close it down.A lot of hotels will close because of Nama but its either that or the banks go bankrupt and the whole country would crumble on the stock market.The Irish hotel industry is facing the biggest challenge in its history, hit by overcapacity, piunging visitor numbers, falling room rates and a chronic lack of credit.When I read Peter Bacon's report, it was suggested that established hoteliers may need to moved into some of the newer hotels on the market if their own was closed.
Pat McCann said "NAMA has a very clear brief which is not talked about and that is the protection of jobs. It's not going to solve the oversupply in the hotel sector because it will want to maintain these business."
For the hotel industry, Nama will not fix it but what about other industry in Ireland?
Anyway, I think Nama for me is really new...I really don't know the systerm here...only one thing I can sure is that...it just happened in Ireland!
Reference: National Asset Management Agency
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