No, Finland did not say NAMA was a good idea
Bloomberg News story on Ireland’s lessons for Spain –
Finnish Prime Minister Jyrki Katainen said on June 11 that Spain should split up some lenders, with some loans dispatched to a bad bank, as Ireland did.
Actual quote from Finnish PM via Bloomberg News 3 days earlier –
“The unhealthy banks should be brought down or some banks should be possible to chop up” so that the healthy parts continue and the rest ends in a so-called bad bank, Finnish Prime MinisterJyrki Katainen said in an interview in Norway today. “There must be a possibility to restructure the banking sector because it doesn’t make sense to recapitalize banks which are not capable of running.”
Ireland spent 2 years, in tandem with NAMA’s existence — insisting that it couldn’t shut down or chop up its banks, and instead that the only option was to keep putting money into them. Indeed, Patrick Honohan recently acknowledged, although it didn’t get enough attention, that the infamous guarantee was itself an obstacle to restructuring the banks.
There are lessons for Spain from Ireland, but they amount to doing the opposite of what Ireland did, not some variation on it. It also indicates a need to be wary of Prime Ministers with an unseemly focus on attending soccer matches.