The National Asset Management Agency is predicting a profit of €1bn when it wraps up in ten years' time. This is far short of the figure of €4.8bn forecast just nine months ago.

When the €4.8bn forecast was made NAMA was using information provided by the banks which indicated that 60% of the loans to be taken over by the agency were non-performing. Now that NAMA controls a significant portion of the loans it has found that 75% fall intop this category. When asked if the banks had been misleading NAMA deliberately, the agency's chairman, Frank Daly, said the banks were managing their loan portfolios so badly that they probably did not have an accurate picture.

These developments resulted in a political row, with Taoiseach Brian Cowen telling Fine Gael leader Enda Kenny that he should spend the summer trying to understand the concept of NAMA.

Some help for troubled mortgage holders

The Government has accepted the interim recommendation of the Mortgage Arrears and Personal Debt Expert Group which it established earlier in the year. The key points are; the year-long moratorium on taking legal action against defaulters will be formalised; no penalties will be imposed on those who are in discussion about their arrears problems; where a home owner in arrears opts for a mortgage product more appropriate to his or her circumstances the interest rate should not increase; and the creation of a non-judicial method of settling cases when it becomes clear that the homeowner has no chance of repaying the mortgage.

Cowen backed by TDs and Senators

Taoiseach Brian Cowen reportedly received a standing ovation at the end of a 15-minute speech at yesterday's Fianna Fáil Parliamentary Party meeting. Reports indicate, however, that Noel O'Flynn and John McGuinness had something to say about how Mr Cowen should be responding to the low level of support which both he and the party is receiving in opinion polls.

Mr Cowen apparently made it very clear that he expected an immediate end to the public criticism of himself and the party that is being voiced by some TDs.

Earlier yesterday a meeting of Fianna Fáil senators gave unanimous backing to Mr Cowen's leadership.

Citywest complex in receivership

The Citywest Hotel, Conference Centre, Leisure and Golf Resort in west Dublin yesterday entered receivership but will continue to be run as a going concern. Bank of Scotland (Ireland) appointed Martin Ferris of Ferris and Associates as receiver. The 400 employees will be retained at the complex, which has 1,712 bedrooms, two conference centres and two golf courses.

Property developer Jim Mansfield who owns the complex has not made himself available for comment. Mr Mansfield owns a number of other properties in the area, including Weston Aerodrome, the West Park Hotel and the golf course at Palmerstown House in Kildare.

ESB to take over NIE

The ESB has agreed to buy Northern Ireland Electricity plc (NIE) from the Viridian Group for €1,248m.  NIE is the North's transmission and distribution company. Viridian will continue to be the main generator of electricity north of the border. The deal will have to be agreed by the competition authorities on both sides of the border but is expected to go through before Christmas.

Protests against HSE cutbacks

The carers of people with intellectual disabilities in the West are staging protests against funding cutbacks, which ,they claim, will result in a curtailment of respite care. A spokesman for the Health Service Executive accepted that expenditure cuts were being sought from the Brothers of Charity in Galway but that these can be achieved without affecting frontline services. HSE West funds the Brothers of Charity Services' extensive work with the disabled.

Today's Papers

The Irish Times and the Irish Independent appear to have opposing headlines this morning. The Irish Times leads with "Government moves to aid homeowners in mortgage arrears" while the Irish Independent headline reads "Bailout rolls on for banks but no help on mortgages". The Irish Examiner devotes its front page to the plight of the intellectually disabled in light of the latest cutbacks, with "‘Please help us'".

The Irish News headline of "Publicly funded visitors' centre is Ulster-Scot-free" refers to rent, rates and fitting out charges paid out over the past two years in respect of a centre which has yet to open.

The Weather in Galway

It has been a morning of sunshine and showers and winds gusting up to gale force. Temperature 17C.

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