Honohan urges more long-term debt solutions

Irish banks are still engaging in too many short-term solutions to mortgage debt and more should be done to offer long-term sustainable solutions, Central Bank governor Patrick Honohan declared yesterday.

Among those long-term resolutions for distressed borrowers, the Central Bank is prepared to support banks offering interest-only options with the loan extending beyond retirement age, he told members of the Oireachtas Finance Committee.

“We will continue our intensive oversight of the banks’ progress,” Mr Honohan said, rejecting suggestions that the Central Bank was adopting a hands-off approach and promising it would continue rigorous pursuit of the banks on the matter.