A National Assets Management Agency (Nama) will not pay over the odds for bad debt, a government minister has insisted.

Cabinet member Eamon Ryan was responding to criticism of the plans, which are designed to allow the state to buy up loans based on the potential "long-term economic value" of the property that underpins them.

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Over 40 notable economists and academic have called on the government not to pay more than the market value for properties under Nama.

According to the experts, this is the only means of ensuring the Irish taxpayer does not suffer.

Some of Minister Ryan's Green Party colleagues have raised concerns over the system's valuation process, with the group holding a special meeting to decide on its response to the issue.

Mr Ryan insisted Nama would not overpay for toxic assets.

He also insisted that, of the various options for rescuing the financial system, Nama was the best way to minimise the risk to the taxpayer.

(PR/GK)