Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance his views on whether information supplied to banks by customers through the standard financial statement contradicts suggestions that up to one third of mortgage arrears cases are strategic defaults; and if he will make a statement on the matter. [13507/13]

Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance his views on the fact that approximately half of restructured mortgages fall back into arrears; the way this information will influence the design of solutions to mortgage arrears difficulties; and if he will make a statement on the matter. [13508/13]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 46 and 47 together.

The recently published Central Bank data on mortgage arrears for the end December 2012 shows that at end-December 2012 out of a total stock of 79,852 private dwelling houses, just over 37,000 restructured mortgage accounts were in arrears. The data shows that the accounts in arrears include accounts that were in arrears prior to restructuring where the arrears balance has not yet been eliminated, as well as accounts that are in arrears on the current restructuring arrangement.

The Deputy will be aware that the Central Bank yesterday announced new specific time-bound targets for the six main banks to ensure early and measurable progress by banks in resolving mortgage arrears cases in a durable manner. The Central Bank will also in the months ahead, set demanding quarterly targets for the conclusion of sustainable solutions and for the subsequent performance of those solutions. Progress will be monitored closely and the Central Bank will take any further action which will be deemed necessary.

The suggestion that the rising number of mortgage arrears is in part being driven by increased levels of strategic default, that is individuals deliberately withholding payments when they are in a position to service their debt in hope of gaining concessions from lenders, is wholly anecdotal and not based on any robust, structured, or in-depth analysis of the situation.

In the context of the engagement between banks and borrowers on the provision of long term and durable solutions, the Central Bank has indicated that it expects that banks will have more challenging and in-depth conversations with borrowers on the reasonable priority that should be afforded to mortgage repayments, having regard to other commitments and payments by a household.