Kenny rules out blanket debt forgiveness deal
But ahead of the release of a key report on the mortgage crisis today, the Taoiseach signalled that solutions for homeowners were still a long way off.
The report will not be officially released by its authors and no press conference is planned.
Despite a previous pledge to move swiftly on the report’s recommendations, the Government now says further consultation is needed to decide what measures are needed.
Mr Kenny said the report would be discussed during a two-day debate next week and that the Government was open to suggestions from TDs.
“The report furnished to the Government is not the repository of all wisdom but there are two fundamental principles that must be referred to here — the necessity to maintain people in their own homes and to distinguish between those who cannot pay and those who will not pay,” he said, adding the issue would “not be long-fingered”.
The inter-departmental report, which is chaired by accountant Declan Keane, is set to include plans for:
*A mortgage advisory body to help borrowers, which will be made up of between 100 and 200 officials paid for by the banks.
*Measures to allow homeowners to remain in their home after their property is repossessed by lenders.
*Allowing families and borrowers with homes in negative equity to trade down or move.
Meanwhile, a woman who revealed to the Irish Examiner that her husband had taken his own life after falling into mortgage arrears has described how the couple were offered a menu of huge loans — despite being on social welfare.
Jennifer (not her real name) and her husband received the remortgage loan on their Dublin home, with claims from broker Irish Mortgage Corporation (IMC) they earned a joint salary of €100,000. The couple, who operated a fruit and veg stall, were given a €300,000 loan by lender Springboard Mortgages.
Jennifer told RTÉ yesterday the couple were “already in trouble” when they got the loan in 2007. She said IMC had offered them loans of either €300,000, €350,000 or €390,000.
The Central Bank is now investigating her case but the widow, surviving on €188 a week, is facing the repossession of her house.
“I’m worried sick. [The loan is] the sorriest thing I’ve ever done,” she added.
