On 25 February 2009, the European Commission provided guidance on the treatment of asset relief measures by member states. The Commission considers that a common European approach is presently needed to deal with the treatment of impaired assets, to make sure that foreseeable losses are disclosed and properly handled and banks can use their capital to resume their normal function of lending to the economy instead of fearing they would need this capital to cushion against possible losses. Guidelines were also issued by the European Central Bank on bank asset support measures.
The National Asset Management Agency (NAMA) initiative announced on 7 April will be developed and implemented within the common EU framework detailed in the European Commission Guidance and guidelines issued by the European Central Bank.
My officials have already started the cooperation with the European Commission to ensure that the design and the implementation of the NAMA proposal will be consistent with EU requirements. The measure will be formally notified to the European Commission under State aid rules in due course.