Noonan: Banks should provide loans to builders for new homes

The Finance Minister said he wants the banks to do more lending to property developers to provide equity for new developments.

Yesterday, economist Alan Ahearne said the Government needed to pressure banks into lending to builders. Minister Noonan said builders are getting some loans, but the banks could be doing more.

"Most of the builders are bust, and your typical builder, when things were going well, he borrowed 60-65% from the bank," Noonan said.

"But he needed equity as well - and he got the equity off the last successful housing estate he built."

"Now there's no equity, because the builders don’t have it anymore. NAMA's providing part of [it], but we'd like the banks to help to provide some equity as well."

He said the situation was mending itself as time went on.

The Minister was speaking after a number of people have been queuing since Tuesday in order to buy new houses in Swords, Co. Dublin.