Joan Burton (Dublin West, Labour) | Oireachtas source

On the country-specific recommendations and the national reform programme, there is a call for specific emphasis on resolving long-term non-performing loans through resolution strategies, that is, making provision for write-downs to allow indebted homeowners to resolve their debt and be able to secure their family home. The same would be true for viable businesses, as is referenced in the reports, as well as for households. Ireland is unusual in that there is very little evidence here of any debt write-downs at all. Instead, the debt is being sold to vulture funds. There is much suggestion from those in government that the vulture funds are in some way nicer and easier to deal with. I do not think that is true. The principle of debt reduction is to allow indebted people to get back into an arrangement with their bank.

Will the Taoiseach instruct AIB and PTSB, for example, to deliver debt write-downs to their remaining customers who are in serious arrears? Billions of euro of loans have been sold to vulture funds at a steep discount. This is not being passed on to homeowners. The country-specific recommendations called for better targeted measures in terms of tax expenditures and general government expenditures.

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