NAMA

National assets management agency
For such a hot topic I feel there is actually very little know in the subject. So im going to use this blog to educate both myself and readers,

So what is NAMA and what are the objectives of NAMA.

1; to take "bad" loans from the banks
2; restore the bank’s balance sheets to good level
3; restore the banks credit rating (this enables cheaper interbank lending)
4; free up lending to Small to medium enterprises
5; free up lending for mortgages

NAMA will achieve the above by:

"buying" the "bad" loans from the banks at a reduced price.(between 50-70% of their original value.) NAMA can't pay too much for the loans as the assets that are guaranteeing these loans have reduced in value.
NAMA will pay for these loans by issuing government bonds to the banks in return for the loans these bonds can then be cashed in with the European Central Bank.

Final NAMA will sell the property that they have loans for. Hopefully the market will be after improving and when they sell the properties "NAMA will make money for the taxpayer"
However there are some cons to the implementation of NAMA:

The banks will be left short of money on the loans when the transfer them to NAMA:
The customer is going to be the one to pick up the shortfall by way of higher interest rates and extra charges.

If the European Central Bank comes to cash in these bonds and the property market has not recovered it will be left to the taxpayer to foot the bill.
If the builder can't pay the interest on their repayments now how will he pay them next year in NAMA, again the taxpayer to the rescue.

If NAMA eventually does make a profit out of its property portfolio there will be a list of people that will have to be paid for their "services rendered" while the whole NAMA thing was going on. The taxpayer will probably be lucky here if a loan isn't taken out to repay all these nice people for their "work"

I must thank lucky-colm from boards.ie for their explanation of NAMA, I found their rationalisation of NAMA the most clear in all of my research on this topic.