Brian Cowen (Laois-Offaly, Fianna Fail)

Nothing relating to these matters was concealed. The IMF supports the establishment of NAMA. As regards the issues arising from information contained on the Department of Finance website, a specific paragraph relates to the fact that NAMA will result in a significant increase in bank lending in Ireland. This is on the basis of our encouraging the adoption of a NAMA-type initiative even if the Minister had not already announced the initiative. The suggestion that the IMF was not in favour of the establishment of NAMA or indeed that we could proceed with a NAMA is not correct.

The note on which yesterday's newspaper report was based contains an endorsement of NAMA by the IMF. That particular part of the note did not make it into yesterday's reports. It is clear that the IMF fully backs the Government policy on the banks and the establishment of NAMA. The remarks made on bank lending in Ireland were made in the context of the Minister for Finance, Deputy Lenihan, assuring the IMF that the Government did not wish to see a surge in lending designed to re-inflate the property market to near boom levels. That discussion took place at a meeting last April. We did not then and do not now regard such an outcome as desirable. The IMF agrees with us in this regard.

Since the meeting referred to in yesterday's newspaper report took place we have had an intensive debate about NAMA inside and outside this House. That debate culminated in the passage of the NAMA legislation which allows the Minister to issue guidelines to the participating institutions to facilitate the flow of credit to SMEs. The inclusion of that provision in the legislation arose directly from the concern expressed on all sides of the House that credit be available in this economy. Let us be clear, the intention of the guidelines is not to return to a credit splurge but to ensure that viable businesses and households can access funding.

The purpose of NAMA is to cleanse the banks' balance sheets of toxic loans so that we can create a healthy banking system. The role of the banks in the economy is to make credit available to viable, sustainable businesses and households. It is the Government's view that NAMA is the best way to achieve that aim. The IMF delegation agrees with that view.

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