Government rules out blanket debt write-off

THE Government has ruled out any blanket write-off of debt but last night warned bailed-out banks that there are processes in place that must be used to help cases of mortgage distress.

Some €24 billion of taxpayers’ money was recently committed to the banks following stress tests which showed a range of capital needs, including €6bn to €10bn in potential cases of mortgage default.

While the banks were told there were processes in place to help homeowners, the Government said this must be done on a “case by case basis”, ruling out a blanket debt write-off.