KBC warns that across-the-board debt forgiveness is not on the cards

KBC Bank will not be writing off debt when it is working its way through its mortgage arrears over the next few years, according to its chief executive John Reynolds.

According to its last set of accounts, 29% of its €3.2bn buy-to-let mortgage book is in arrears and 17.5% of its €9.3bn residential mortgage book is in arrears.

Debt forgiveness has become a hugely political issue in tackling the mortgage arrears crisis. The opposition parties in particular are clamouring for debt write-offs as part of an array of solutions aimed at keeping people in their homes and put on a sustainable repayment position.