Brian Lenihan Jnr (Dublin West, Fianna Fail)

I discussed the roll-up of interest with the authorities at the National Asset Management Agency as an issue of particular concern. I assure the House the agency is dealing with the various developers and their arrangements with the institutions in the context of the preparation of business plans. These plans will ensure that a far more rigorous approach will be taken in regard to developers than was taken by many of the financial institutions. The lack of rigour on the part of those institutions in their dealings with individual developers is a matter of serious concern. This applies not only in regard to roll-up of interest, but to the amounts they were permitted to draw down to sustain themselves.

To complete the picture, the question of security was raised. It is primarily in Irish Nationwide that this difficulty has been identified in regard to transactions.

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