Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 88: To ask the Minister for Finance his views on Allied Irish Banks proposal to write off certain stressed residential mortgage loans; and if he will make a statement on the matter. [8376/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I note that the Chairman of AIB has said that they are internally examining a number of measures including intergenerational mortgages and partial write off of the mortgage where the bank takes an equity share in the house. However, AIB will require the approval of the Central Bank and the Government before any of these measures are brought into effect. In assessing the suitability of any new measures three considerations will be taken into account. Firstly, any new measures should only be available to those who have genuinely tried everything to meet their obligations. Secondly, any assistance to mortgage holders must be very carefully targeted to ensure that there are no additional unnecessary costs being imposed on the tax payer. Thirdly, as a scheme open to everyone would be completely unaffordable, it would be necessary to ensure that appropriate limits with respect to costs are clearly set out and adhered to.

It should be remembered that most people are paying their mortgages in full and on time. In previous periods of difficulty, defaults on mortgages were few and today, almost three years into the financial crisis, we see very few repossessions.