Honohan: troubled loans process has a long way to go, but is moving

The Governor of the Central Bank claims the case-by-case resolution of impaired loans in Irish banks still has a long way to go.

Patrick Honohan made the remarks at a conference in Dublin on the future of banking in Europe.

He said the banks will need to set aside further sizable provisions to enable them to absorb the inevitable credit losses.

He also says European agreement for plans to fund loss-making tracker mortgages doesn't seem likely in the short-run.

However Governor Honohan says the measures to address troubled loans are gaining traction.

"At last, there are clear indications that the operational processes put in place to accomplish this goal are gaining traction, and that the problem can finally be brought under control," he said.