Repossession must be a last resort, says IMF chief

Repossessions should only be used as a last resort in tackling the mortgage arrears crisis, Christine Lagarde, the managing director of the IMF, has said.

“The key here is to work out loans on a case-by-case basis, for both households and enterprises — to find a sustainable way forward for those who cannot afford to pay,” she said.

“Fundamentally, we need to bring banks and borrowers together to find durable solutions to the debt problem, and keep bankruptcy and repossession on the table as a last resort where there are no better options,” she said.