Troika told banks will be off leash to repossess homes and harass families

Ministers have told the troika about how they will let banks off the leash to repossess homes and harass families mired in mortgage debt misery with increased “cold contacts”.

In the Government’s latest assessment of how well it is complying with the economic straitjacket imposed by the IMF-EU-ECB troika in return for bailout funds, Finance Minister Michael Noonan has made it clear that far more pressure will be put on people struggling with debts seen as unsustainable by lenders.

In reference to its efforts to push through laws overturning an effective High Court bar on mass repossessions in force since 2009, the document states: “We recognise the need for efficient repossession procedures to promote the completion of sustainable mortgage solutions.”

The minister emphasises that he wants to “remove unintended constraints on repossessions for mortgages created prior to Dec 2009”.

The document emphasises how the Central Bank intends to relax the code of conduct on mortgage arrears to let banks increase the number of unsolicited contacts they make with mortgage holders in arrears.

The Department of Finance document highlights the fact that the definition of a “non-co-operative borrower” is to be changed so that key protections extend only to those seen to “engage constructively” with banks in a limited time period.

The memorandum also promises to combat massive government overspends, such as in the health department, by imposing legally binding, financing limits.

Troika bosses have become so concerned about Health Minister James Reilly’s failure to get a grip on his budget they have demanded monthly updates from him in an attempt to impose some fiscal discipline.

However, the document makes clear that such legally binding “ceilings” will be able to be “revised” in certain circumstances.

The Government tried to limit criticism of its failure to keep its promise to bring down the massive drugs bill by switching from branded to generic medicines, by stating it is set to publish a study comparing costs here against those in the rest of the EU.

Ministers have told the troika the planned €300m saving from the public sector wage bill will be achieved, despite experts questioning whether that is credible given the constraints of the revised Croke Park II deal negotiated after unions rejected the first offer.