Written answers

Tuesday, 24 September 2013

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
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161. To ask the Minister for Finance the amount of funding each bank has received for the purpose of dealing with distressed family mortgages; and if he will make a statement on the matter. [39201/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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In early 2011, as part of the agreement with the External Partners, the Central Bank commissioned a detailed and data-driven evaluation of the possible loan losses that would be incurred by the banks in a severe, but not utterly implausible, stress scenario. All the loan books were examined, including the residential mortgage books in Ireland and the UK, taking into account projections in arrears, house prices etc. The results of this work were key inputs into the capital requirements identified in PCAR 2011, which totalled €24bn. Total losses modelled under the stress scenario on Irish mortgages were €9bn. This comprised €2bn at BOI, €4.4bn at AIB/EBS and €2.6bn at ptsb. However, in the analysis, there was never any specific provision made for the purpose of providing debt relief for distressed family home mortgages. Further details can be found at

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