Of course they do need additional capital to move forward, but, as has happened in the US and elsewhere, the government’s capital injections of last year into these two institutions looks like being well-remunerated. This takes account of the low prices being paid – much lower than originally envisaged – for the loans being transferred to NAMA.
The NAMA purchases replace risky property-related loans with risk-free NAMA bonds and are part of the process of putting them on a solid foundation.