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Borrowers who genuinely can’t pay will get debt deals from banks

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Independent.ie – By Charlie Weston and Fionnan Sheahan – 13 March 2013

aoiseach Enda Kenny is set to outline at a press conference today that:

– Banks will have to offer deals that last years — rather than just putting those behind with their payments on the likes of interest-only deals for a few months.

– The deals will include split mortgages and long-term, interest-only deals for those in serious arrears.

– But there will be no debt write-offs, informed sources have indicated — the mortgage will have to be repaid in full.

The six main banks — AIB, EBS, Bank of Ireland/ICS, Permanent TSB, Ulster Bank and KBC Bank — will be given common targets for dealing with mortgage arrears.

Banks yesterday met the Central Bank and the Cabinet was briefed about the new strategy, details of which are revealed for the first time by the Irish Independent.

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