Nama economist calls for part privatisation

The economist who devised the National Asset Management Agency (Nama) has today called for the institution to be part-privatised.

Peter Bacon has also called for the establishment of a National Mortgage Bank and the sale of more State assets.

He said that these policy changes could put Ireland back on the road to growth.

In a report commissioned by Treasury Holdings, Bacon warned that if Ireland does not take measures to stimulate domestic demands, the country faces stagnation for years to come.

The economist is urging a review of Nama's current business strategy, saying it will face a challenge to recover its outlay and costs from the management and disposal of loan assets.

Mr Bacon said that selling part of Nama to a private equity investor might provide a better return for the taxpayer.

"Part privatising Nama would give, not a competition between a Nama 1 and a Nama 2, but would provide a good basis of comparison between a private sector Nama structure and the kind of public-sector agency which is there at the present," he said.

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