Financial institutions have until next Friday to apply to the Government to join the National Asset Management Agency and sell development loans to the agency.

Foreign banks with Irish subsidiaries are likely to formally declare next week whether they intend to apply to participate in the so-called “bad bank” plan.

The deadline falls on February 19th for Nama, giving financial institutions 60 days to apply to sell loans to the agency.

Five domestic lenders – AIB, Bank of Ireland, Anglo Irish Bank, Irish Nationwide and EBS – are expected to be the only participants in the scheme.