There is a way for entrepreneurs to survive — get out of the country

FAIR dues to Edmund Honohan. The master of the high court has called it as he sees it. His job means that he has the role akin to air traffic controller in processing legal debt conflict.

My message to the master? He ain’t seen nothing yet. In the first quarter of this year a mere 2010 house repossession orders have been issued by the courts. A tsunami of judgments will be sought in the coming three years on mortgage debt alone. 44,500 mortgagees have been unable to meet interest payments for more than three months. Agreed procedures with lending institutions’ code of practice mean that it takes two years for a defaulter to get to court. Meanwhile, more than 300,000 householders live in negative equity territory.

The Irish Bankers’ Federation spokesman Pat Farrell is one of the cutest, smartest and politically experienced spokespersons in the country. His response to Honohan was to explain the banks’ “forbearance” to date. This is mostly due to internal initial denial and subsequent paralysis in facing up to lone losses. The lending institutions own internal valuations of collateral held against loans have collapsed by at least 50%. Where they issued 100% loan to value credit, there is inevitable debt default. Their accountants are now up to speed and have declared cumulative losses of €70 billion. These write-offs have transferred to the taxpayer and sovereign debt, yet banks are seeking and obtaining court judgments for the full amount.