IMF urges banks to assist struggling mortgage holders

BANKS have been urged by the International Monetary Fund (IMF) to help struggling homeowners.

In a review of Ireland, the IMF, which oversees the global financial system, said now that the banks have more capital they could absorb the initial costs of some form of assistance for those who are finding it difficult to pay their mortgage.

It said the transfer of loans to NAMA and the revised capital ratios imposed by the Financial Regulator had moved the banks towards normalcy, adding that a scheme to assist homeowners in difficulty is overdue.