Burton: Banks are 'extremely wrong' to pull out of insolvency discussions

Tánaiste Joan Burton has said that it is "extremely wrong" for banks to pull out of debt and insolvency discussions with mortgage holders.

Minister Burton says the Government is continuing to discuss a number of issues related to helping people in debt and mortgage arrears.

The Labour Party hasproposed reducing the period of bankruptcy here, from three years to one year.

Minister Burton said that the Cabinet is working hard to make sure banks do not withdraw from debt negotiations at the last minute.

"We've had very detailed discussions about oversight mechanisms, which would ensure that what the personal insolvency practitioners have described where banks go into discussions, through the various mechanisms, and then pull out at the last minute," she said.

"That's wrong and it's extremely wrong, that that should be happening, and a mechanism has to be found to address that."