Who'd have thunk it..Demand and Supply actually exists. Maybe Lenihan should have asked a Leaving cert economics student what happens to price when there is excess supply
THE National Asset Management Agency (NAMA) is unlikely to ever get back the full amount it is owed for land loans bought from the country's banks, Credit Suisse warned yesterday.
"There is simply too much development and too much unoccupied property for even more new property to generate yields," said Credit Suisse analyst Niall O'Connor in a note to clients yesterday.
NAMA won't recoup full amount owed for land loans - Irish, Business - Independent.ieFinance Minister Brian Lenihan told the public last December that NAMA would make a profit for the State over the next 10 years as it sold land for more than it originally paid. The organisation has not yet sold any land and is still valuing land as it buys smaller loans from lenders.
Officials have already conceded that some land NAMA has bought is virtually worthless and the agency may have to bulldoze some half-finished buildings so development land can be used by farmers to graze cattle.