Dáil Éireann Debate, Thursday - 17 January 2013
21. Deputy Éamon Ó Cuív asked the Minister for Finance the discussions he has had with covered banks regarding the operating guidelines they will apply in respect of implementing the terms of the Personal Insolvency Bill; and if he will make a statement on the matter. [2027/13]
View answerThe Deputy will be aware that the Personal Insolvency Act was signed into law by the President on the 26 December 2012. The Act will now be subject to a commencement order by the Minister for Justice, Equality and Defence.
It will be a matter for the covered banks, and indeed for all relevant creditors, to engage with any proposal made by a debtor under the debt resolution frameworks provided in the Personal Insolvency Act. However, decisions on such proposals will be a matter for individual creditors. In respect of the covered institutions, under the Relationship Framework Agreements I have with the covered banks, responsibility for commercial policy and day to day operations remains with the Boards and management of the banks and I do not have any involvement in such decisions. However, in any engagement with the covered banks, I have pointed out the importance and necessity to the banks to appropriately implement legislation enacted by the Oireachtas.
In addition, the Central Bank has informed me that as part of its on-going engagement with all mortgage lenders on their Mortgage Arrears Resolution Strategies (MARS), lenders have been reminded of the importance of considering the impacts of the Personal Insolvency Act on their respective strategies. Work in this area will continue in 2013.
