Peter Mathews (Dublin South, Fine Gael) | Oireachtas source

I wish to raise three matters. In order that there will be no misunderstanding, when I refer to restructuring of AIB's client loans - mortgage loans, buy-to-let loans and SME loans - I mean including a write-down in order that the loans will be recalibrated to reflect what the current, reasonable and maintainable profits of the borrower can bear. Otherwise, our guests will only be fooling themselves and playing at "shadow banking". That is not on. If standard variable rates increase from 4% to 6%, that is a 50% increase. If people are under stress and strain at a figure of 4%, their levels will rise again by 50% if there is an increase to 6%. This only adds to the argument of ensuring the recalibration or restructuring, including a write-down, is done sooner rather than later.

I echo what other members have stated, namely, that people are under enormous stress. It is not just in the context of doing the arithmetic and dealing with the numbers. Those to whom I refer are literally crying, shivering, nervous wrecks when we meet them at our offices. It is very distressing to have to deal with this matter. I ask our guests to please meet their clients. I am glad they have indicated they are going out across the country to do just this. They should keep up what they are doing in this regard.

My final point is that I had experience of loan portfolio work-outs for a five or six year period in the 1980s. I have, therefore, been on the battlefield, which is why I am of the view that it is important to clean up the position and not leave loans to fester or park 50% of them in no man's land. If the latter is done, we will have a sword of Damocles hanging over us in four, five or six years time, which is wrong. It is, therefore, very important to clean up as one goes. I thank our guests and appreciate them giving of their time.