Taoiseach Enda Kenny has rejected a claim by the Bank of Ireland chief executive that the new personal insolvency rules could mean higher mortgage repayments.
Mr Kenny was responding in the Dáil this afternoon to Richie Boucher’s reported comments that the new rules could mark a “fundamental” change in the playing field for banks and make mortgage lending more risky.
“I note the comments from the Bank of Ireland, which I am glad is moving back towards private funding,” he added.
“But I disagree with Mr Boucher, when he says that decisions taken in respect of personal insolvency legislation, put through the House by the Government, will increase interest rates for persons who are on mortgages and paying their way.”
Mr Kenny said the personal insolvency legislation was intended for people who had a series of difficulties across a whole spectrum of circumstances. The banks, he added, had been recapitalised to deal with mortgage distress.
Mr Kenny was replying to Fianna Fáil leader Micheál Martin, who said families desperately needed action on the issue. They were putting aside expenditure on visits to GPs, food and heating, so as to keep a roof over their heads and make ends meet.
“It is the biggest worry for thousands of families out there,” he added.
He said Fianna Fáil had proposed establishing a debt settlement office, which would have teeth and force resolutions between banks and their customers. However, it had not been accepted by the Government.