Debt Forgiveness and Mortgages in Ireland

Ratings agency FITCH  has said that Debt forgiveness will be “the dominant factor shaping the Irish mortgage market” if the  proposed personal insolvency bill is made law.

Earlier this month, Moody’s rating agency said a quarter of all Irish mortgage debt was susceptible to being written down under proposals in the new personal insolvency legislation

The ratings agency said the proposals were “credit negative” for bonds backed by residential mortgages sold by Irish institutions.