Madam, – Nama is currently offering €54 billion for the banks’ loans. The compound interest and management charges associated with Nama loans are being ignored by the media.
For illustrative purposes, a compound interest rate of 5 per cent increases the €54 billion to €88 billion after 10 years and to €143 billion after 20 years. If an annual 3 per cent management fee is added to the interest charge, the €54 billion increases to €117 billion after 10 years and to €252 billion after 20 years.
The key point is that the real cost of servicing the Nama debt over time is not being made clear to the Irish taxpayer.
In my opinion, the current population will be unable to meet the costs and we will end up going back to the banks with cap in hand, to ask them to buy Nama loans back at discounted rates below market value. – Yours, etc,
Madam, – With reference to your editorial on Nama (September 17th), the reason there is no provision in the Nama Bill to ensure lending to businesses is because the legislation has nothing to do with future lending, and everything to do with bailing out the shareholders of the banks and the organisations underwriting the ludicrous levels of debt that the banks created. – Yours, etc,
Madam, – I have studied the speeches and done the sums. The main problem we face with Nama is neither financial nor economic but a very human one.
We are being told by a Government that is distrusted to save those who, along with it, have ruined our country, namely the banks and developers, because it is in our best interests.
This gruesome logic dictates that we can’t help ourselves without helping them. This may, unfortunately, be true but it is sickening to accept. – Yours, etc,
Madam, – Now just let me get this right. The already overburdened taxpayer will pay the banks for their unwanted debts so the banks can lend this taxpayers’ money back to the already overburdened taxpayer ... now doubly crucified by Nama? – Yours, etc,