Dáil Éireann Debate, Tuesday - 3 November 2009
144 Deputy Martin Ferris asked the Minister for Finance if he will oblige banks, as part of the National Asset Management Agency legislation, to work with individual mortgage holders to renegotiate negative equity portions of their mortgages. [37611/09]
Amharc ar fhreagraThe National Asset Management Agency (NAMA) is being set up to remove land and development loans and associated loans from the balance sheets of participating institutions. The uncertainty associated with these loans has prevented banks from lending and supporting economic recovery. The Government has no plans at present to extend the scope of NAMA beyond land and development loans and associated loans.
The Deputy will also note that the revised Programme for Government includes a commitment to introduce new measures to protect families having difficulties with their home mortgage payments. The Code of Conduct on Mortgage Arrears and the recently agreed protocol between the Irish Bankers Federation (IBF) and the Money Advice and Budgeting Service (MABS) on debt default will be further reviewed with a view to expanding the options available for dealing with debt situations, including for example the use by banks and lenders of more flexible mechanisms to avoid foreclosure in appropriate circumstances. With reference to the measures adopted in other jurisdictions, the Government will also examine ways of expanding its own mortgage support measures.
