Written answers

Wednesday, 8 October 2008

Department of Finance

Financial Services Regulation

9:00 pm

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Question 210: To ask the Minister for Finance his views on the refusal of a number of financial institutions to offer tracker mortgages; and if he will make a statement on the matter. [34055/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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Last week against the backdrop of unprecedented difficulties in international financial markets, the Government acted quickly and resolutely to guarantee the depositors and lenders with Irish financial institutions and ensure these institutions can access the funding necessary to enable them to continue to provide the financial services and liquidity needed for the proper functioning of our economy and society.

The Credit Institutions (Financial Support) Act, 2008 provides the necessary legal underpinning to the Government's announcement and I will shortly bring before the Houses of the Oireachtas the scheme provided for in the Act, which will set out in greater detail the terms and conditions on which assistance will be provided.

In taking its decisive move, the Government has done its part to create the conditions that will enable credit institutions to access funding so that they are in a position to fulfil their role in providing credit in our economy and society. It is now up to these institutions to respond to the Government's action by ensuring the flow of finance is channelled to sustain economic activity.

However, as the Deputy is aware, the decision as to the range and scope of the particular products to be provided by financial institutions is ultimately a commercial one for those organisations and one in which neither I nor the Financial Regulator has an operational role.

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