It has been reported that NAMA has plans to set up a fund in conjunction with Allied Irish Bank and Bank of Ireland worth €1 billion to provide finance to those purchasing property and has invited non-NAMA banks to participate.

In speeches delivered by the Chief Executive and Chairman of NAMA, the Agency is reportedly aiming to introduce a product with both Allied Irish Bank and Bank of Ireland to address negative equity concerns which face purchasers of residential property.  The speeches also addressed the mechanisms which NAMA could employ to stimulate commercial property sales transactions. The agency is reportedly considering debt financing methods such as staple debt or vendor financing to alleviate liquidity difficulties faced by the banks. Following a further 15% fall in commercial property prices since the November 2009 valuations, it is reported that NAMA may also be willing to sell properties for less than the valuation levels at which the loans were acquired.

Contributed by Brendan Cahill.