A quarter of all Irish mortgage debt is susceptible to a write-down under proposals contained in the Personal Insolvency bill, it was claimed today.
Ratings agency Moody’s has rated the Government-proposed mortgage arrears Bill as credit negative for banks because many mortgage loans will be written down while borrowers may become discouraged from maintaining payments.
The proposed legislation, announced late last month, allows for debt forgiveness for people with unsustainable mortgages.
It has previously been estimated that up to 30,000 homeowners could benefit from the legislation while tens of thousands of others who have amassed large unsecured and unaffordable personal debt would also be able to use measures contained in the Bill to lessen their debt burden or lift it entirely.
Read the full story in the Irish Times here