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Title: Definitive action to revive banking sector necessary : 03/30/2010

IBEC, the group that represents Irish business, said that today's decisive move towards purging the banking system of bad loans was a key milestone on the way to restoring international confidence in the Irish economy. It said that while the level of public investment required was immense, the definitive nature of the intervention was necessary.

IBEC's comments follow a statement by the Minister for Finance Brian Lenihan, which gave further details on the valuation of loans moving to the National Asset Management Agency (NAMA), and the implications this would have for public investment in the banks.

IBEC Director General Danny McCoy said: "The economy needs a competitive and vibrant banking sector if it is to thrive, expand and create jobs. Facing up to the full extent of the losses incurred due to the collapse of the property market is a necessary step towards achieving this goal.

“However, NAMA will only help economic recovery if it results in increased lending to business. The Government and the banks must now work together to ensure that the availability of credit to viable businesses is fully restored."


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