News & Events
Rounding up of toxic assets laid bare by the pandemic
Many will remember the collapse of the Irish economy in the 2008/9 global recession when all the three national banks had to be bailed out. At that time, the huge exposure of Irish banks on real estate and loans to developers resulted in a property crush.
The American term for such under-valued collateral is toxic assets and a quick decision was taken by the Irish Central Bank in 2009 to round up all debt in a moribund company called NAMA – in order to deal expeditiously with non-performing property loans acquired from Irish banks. This move was a smart way to clear the banks of devalued properties in their books which they held as collateral for loans that went bust. History seems to repeat itself.