Personal Insolvency Bill and interest rates.

In the Dail thi sweek – Enda Kenny was talking about mortgage debts and the proposed Personal Personal Insolvency Bill .
He said the ” negative equity generation” are directly impacted on by this issue. Thousands of people are in negative equity because of reckless lending processes in banks.

He also said that he “noted the comments of the Bank of Ireland which is moving back towards private funding, but I disagree with Mr. Richie Boucher, its chief executive, when he says Government personal insolvency legislation will increase interest rates for mortgage holders who are paying their way.”

Kenny continued … “The Personal Insolvency Bill is for those who have a series of difficulties across a spectrum of circumstances. It should be made clear, as the Bank of Ireland is aware, that the banks have been recapitalised to deal with mortgage distress and with circumstances where people are in serious difficulty with their mortgage. The Bill has been designed to deal with people in difficulty.”

“It is wrong to suggest, as I saw in a newspaper today, that the Personal Insolvency Bill will cause interest rates to rise for people who are paying their way and facing challenges in their mortgage. That is not the intention. The banks have been recapitalised to deal with cases in which the holders of a residential mortgage are in serious distress. It is a matter for the banks and lending institutions to sit down with individuals and work out the best prospect.