Fitch: Bad loan levels to fall further

Instances of non-performing Irish homeloans are set to reduce further over the remainder of 2015, according to leading international credit rating agency, Fitch.

In its latest mortgage market index for Ireland, the agency says it sees bad debt levels continuing to dwindle, with restructuring arrangements and renegotiations between bank and borrowers playing a key role.

It also noted the Central Bank’s new mortgage lending restrictions and said they are likely to lower credit growth, but should have a limited impact on home price recovery. The recent change in arrears trends, according to Fitch, “is a result of ongoing servicing activities aimed at resolving long-term arrears cases, and an improvement in the domestic macro-economic environment”.