Professor Philip Lane:

I doubt if there is any interconnection between the two.

The reform of section 110 in terms of levying greater taxes on the profits that they can generate in Ireland is a general policy move. Regardless of that, the firms' strategy for their loan portfolios would reflect a number of factors. Many of the portfolios in question include troubled loans. That is why the main banks have sold them on to investment funds. How are individuals in deep arrears being treated by the funds compared with how they are being treated by the banks? Recall that the Oireachtas has provided individuals with greater protections through reforms of the bankruptcy code, insolvency procedures, etc. When cases come to court, a restructuring can often be achieved if there is meaningful engagement by the debtors. It is important that individuals engage with credit servicing firms to deal with the situation.