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Taoiseach defends Nama claim on lending
09-Feb-10
THE TAOISEACH has defended his claim that the National Asset Management Agency (Nama) will increase the supply of credit into the economy despite the International Monetary Fund (IMF) saying it would not lead to any significant increase.“People should contemplate what level of credit accessibility we’d have in this economy without Nama,” he said.

“It’s not just sufficient in itself obviously for credit flow, it’s certainly an important and necessary part of restructuring our banking system, of that there’s no doubt, in terms of improving as a location for funding of banking operations,” said Mr Cowen.

Mr Cowen has previously said that the Government’s objective in restructuring the banks through Nama was to “generate more access to credit for Irish business at this critical time”. Last September, the Minister for Finance expressed a similar view, saying it would lead to more lending for business and households.

Yesterday The Irish Times reported that the IMF told Minister for Finance Brian Lenihan last April that Nama would not lead to a significant increase in lending by the banks.

Responding to questions about the story at Engineers Ireland headquarters in Dublin, where he was launching Engineers Week 2010, Mr Cowen said Nama would make Ireland a better location for the funding of banking operations.

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