Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 56: To ask the Minister for Finance his views on Allied Irish Bank's recent statement that it would consider debt forgiveness in certain cases on its mortgage book. [14158/11]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware of the work of the Expert Group on Mortgage Arrears and Personal Debt (the Group) which produced its final report in November 2010. The Group, during the period of its research, could not identify any arrangements internationally that could be characterised as mortgage debt forgiveness schemes, with the exception of parts of the US where non-recourse mortgage lending applies. The Group did not recommend a formal debt forgiveness scheme having regard to the broad range of policy considerations which are outlined in the main body of its final report.

Any lenders considering debt forgiveness should discuss their proposals in advance with the Central Bank and the Department of Finance.

The Programme for Government contains a number of proposals aimed at helping mortgage holders in genuine difficulties. The Government is progressing the issues and decisions will be made as soon as practicable.