Ireland to miss a late February deadline to set up its bad bank

IRELAND will miss a late February deadline to transfer its first loan to “bad bank” National Asset Management Agency (NAMA) as it awaits European approval to start the scheme.

The transfer to NAMA is instead expected to happen late in March, when Bank of Ireland marks its year-end.

NAMA, which is awaiting approval from the European Commission was set up to acquire property and development loans from the Irish banks.

Transfers to NAMA will require banks to raise extra capital, with the government already indicating it will have to step in to provide more capital as a result.

Early last week the Irish government was forced to take out a 16 per cent stake in the Bank of Ireland.