Sandra McLellan (Cork East, Sinn Fein)
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36. To ask the Minister for Finance if will work with the Central Bank of Ireland to agree a definition of a strategic defaulter in relation to mortgages. [41507/13]

Michael Noonan (Limerick City, Fine Gael)
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I have been informed by the Central Bank that it has not defined the concept of "strategic default". However, the Central Bank has defined the concept of ‘cooperation’ within the Code of Conduct on Mortgage Arrears, CCMA, which applies to all mortgage providers in the State. Mortgage holders in arrears but who are deemed to be "co-operating" with their institution are provided additional protection from their lender.

There is no information available to my Department on the scale of mortgage holders who have the clear capacity to meet their mortgage, and other financial commitments, but are refusing to do so. Such an issue is one that can only be resolved by creditors and their debtors. The standard financial statement, SFS, and the relevant provisions of the CCMA provide a framework to allow the resolution of a debt secured on a primary residence. The Personal Insolvency Act also provides a legal framework to allow debtors and creditors to resolve positions of insolvency and over indebtedness in a fair way for all parties having regard to the insolvency of the debtor. However, if creditors are of the view that a person has the clear capacity to meet their financial obligations but is refusing to do so, then the legal process and the Courts are at the disposal of such creditors to enforce the debt contracts of solvent debtors.