Central Bank starts mortgage debt talks

The Central Bank brought the banks, credit unions and other lenders together yesterday to reach a compromise on the explosive issue of secured and unsecured debt in resolving the mortgage arrears crisis.

Another meeting is scheduled for tomorrow, although informed sources say it could take up to two months before a workable agreement is put in place.

“It was a very productive meeting. I believe all issues were surfaced and are now on the table. We will work through them now one by one. Collectively those present agreed a path forward to progress the mutual objective of a framework for multi-borrowed distressed borrowers,” said Fiona Muldoon, Director of Credit Institutions and Insurance Supervision at the Central Bank.