Government defends troika’s silence during visit

The Government has defended the troika’s decision to refuse any questioning from the media during its 10-day trip to Dublin to check the country is not reneging on its bailout promises.

It came as Fianna Fáil finance spokesman Michael McGrath insisted the spotlight must be put on the “crippling” standard variable mortgage rate of 5.19% charged by Permanent TSB when the bank’s future comes up for discussion during the review mission by the troika.

The IMF/EU/ECB team will also shun opposition politicians in an apparent bid not to be drawn into party wrangling ahead of the May 31 referendum on European fiscal union.

Tánaiste Eamon Gilmore defended the move, telling a Dáil committee on EU affairs: “They are conscious of the fact of the referendum and don’t want to get involved in the debate.”

Enda Kenny’s spokesperson said the Taoiseach would not tell the troika what to do, or offer advice to it on such a matter.

Fianna Fáil reacted angrily to the troika’s decision, warning it would create an impression of decisions being made “behind closed doors”.

Sinn Féin also expressed concern.

Meanwhile, Mr McGrath said: “The Government continues to preside over a situation where State-owned Permanent TSB is charging a standard variable rate of 5.19% to its existing mortgage customers — that’s higher than another State-owned bank, AIB [3.04%].

“It is entirely unacceptable that thousands of standard variable rate customers continue to be fleeced by the bank.

“The Government must now seize the opportunity and ensure that this variable rate is reduced as part of the restructuring of the bank.

“In the case of a family with a €250,000 mortgage over 25 years, the annual repayment on a Permanent TSB standard variable rate mortgage is €3,582 more than AIB. That’s an extra €300 per month because of the higher interest rate being charged. Over the lifetime of the loan, this mortgage-holder would end up repaying €90,000 more than an AIB customer for example. This differential is completely unacceptable.”

The troika is carrying out its sixth inspection of the State’s financial affairs, as it has done every quarter since the bailout.