Enda Kenny (Mayo, Fine Gael) | Oireachtas source

Article 28.4.3o of the Constitution precludes me from commenting on the detail of what happens at such meetings.

Bank of Ireland made an announcement about the increase to which the Deputy refers last July. It is important to state this is a commercial decision on the bank's part. The State only owns 15% of Bank of Ireland. It is not the case that the Government is in a position to issue orders to any bank in respect of commercial decisions on interest rates.

It appears that the fluctuation in interest rates is coming to an end. It seems that most of the rates are coming into the range of 4.3% to 4.5%. For example, AIB's rate stands at 3.5%, that of the EBS is between 3.95% and 4.45% - depending on the loan-to-value ratio - while the position with regard to Bank of Ireland is similar, with a rate of between 4.3% and 4.5%. In addition, the rate of the ICS is between 4.6% and 4.8%, that of KBC is 4.25%, NIB, 4.35%, the PTSB, 4.35% and Ulster Bank, 4.5%. Any increase in interest rates creates a difficulty for people. What one does not want is the development of a situation where losses on tracker mortgages are being funded by increases in interest rates for variable mortgages.

The State obviously has a real interest in persons with mortgages which are either in arrears or distress. Part of the general discussion with the banks at the EMC was on their forbearance proposals in dealing with those to whom I refer. They published their-----

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