Bill to ease bankruptcy rules promised for April

THE Government is to publish a bill to ease its strict bankruptcy rules by early April, fulfilling a requirement of its EU/IMF bailout and offering relief to thousands struggling under crippling mortgage debt.

It can take up to 12 years in Ireland to be discharged from bankruptcy, compared with one year in Britain, a situation which has prompted several high-profile businesspeople to take up residency across the Irish Sea to take advantage of the lighter regime — a practice which has become known as bankruptcy tourism.

The Government recently cut the minimum period before an application can be made for discharge to five years, but this shorter term is subject to strict conditions.

The new law is expected to significantly reduce the timeframe; relaxing the conditions could cut the value of a vast pool of property loans held by Government agencies and state-controlled banks.

“The bill itself we hope to have published in its full form... just shortly prior to the Easter vacation,” Justice Minister Alan Shatter said.

Irish household debt was 129% of GDP last year, according to IMF data — the highest level in the industrialised world.

More than one-in-10 Irish home loans are not being fully repaid, and the situation is deteriorating as unemployment remains stubbornly high and house prices continue to fall.

Meanwhile, Ireland’s talks with the troika this week will focus on the potential sale of Bord Gáis Energy, Coillte and Dublin Port Authority, the Sunday Business Post reported yesterday, citing unidentified sources.

The troika, consisting of the International Monetary Fund, European Central Bank and European Union, wants the Government to raise €5 billion to service its debt burden.