Personal Debt

Wednesday, 21 September 2011

Questions (23)

Jerry Buttimer

Question:

23 Deputy Jerry Buttimer asked the Minister for Finance in view of the protracted duration of the economic crisis, if he will consider, with consultation with the Financial Regulator, making provisions to compel financial institutions to offer distressed borrowers variation in agreements which last for a number of years rather than the current practice of variation agreements that lapse after six or 12 months; and if he will make a statement on the matter. [25280/11]

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Written answers

Minister for Finance (Deputy Michael Noonan)

The Deputy might wish to note that, in addition to the existing measures which resulted from the report of the Expert Group on Mortgage Arrears and Personal Debt (published in November 2010), a new working group has been established under the Economic Management Council. Its remit is to consider the state of implementation of the main recommendations of the expert group and to consider and develop further necessary actions to alleviate the mortgage over-indebtedness problem. The Government will consider what further action is warranted once the working group has concluded its deliberations and reported to the Economic Management Council. I expect that the working group will complete its work in the very near future.