Tracker deal key for return to markets

A solution to the tracker mortgage crisis crippling the banking sector has to be included in the exit programme from the EU/ IMF bailout if the country is to make a sustainable return to the markets, according to a Brussels-based EU Commission source.

However, finding a deal that would satisfy the troika, the Government, and the banks remains elusive, with no breakthrough in sight.

Tracker mortgages are a significant problem for the three pillar banks because they are mostly lossmaking and are seen as one of the main barriers to the sector’s return to profitability.