Ciarán Lynch (Cork South Central, Labour)
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I wish to pin down Professor Honohan on this very critical point. Are the banks aware that this constitutes a resolution process? Mixed messages appear to be coming back. When some people enter into resolution processes, the banks seem to be saying that their arrangements must be wrapped up by the time they reach retirement age. A number of colleagues on the committee have expressed concerns to the banks to the effect that those whose homes are in positive equity are particularly vulnerable in the context of their being pushed into voluntary sale arrangements. The people in the group to which I refer - if they can move into interest-only arrangements - should not be forced into voluntary sale. Professor Honohan is sending out a clear message that if someone's home is in positive equity - they may be in negative equity in some instances - and if he or she can sustain payment of some type into retirement, then he or she will be allowed to remain in his or her home into retirement and that an element of the debt will be parked, that there will be an equity swap or that there will be a transfer down the line. He is stating that the Central Bank is giving the green light to this as a resolution process.