Michael McGrath (Cork South Central, Fianna Fail)

I have some concerns over NAMA's intention to use €2 billion of its cash reserves on vendor financing. In effect it will lend money to people or institutions to buy NAMA assets. While it might look good in terms of achieving its sales targets, given that the agency is trying to reduce the debts owed to it, adding to the debts by lending money to prospective purchasers may not be appropriate. I know it is a financing model that is well established and frequently used, but given that this is a State agency trying to reduce the money it is owed, I am not convinced of its merits.

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