Brendan Burgess
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Ciarán Hancock in today's The Irish Times reports today that Marco Buti, Director-General for Economic and Financial Affairs has responded to a letter from Brian Hayes.
Squeezing mortgage interest rates through “political pressure” could undermine the progress made by Ireland towards “healing the domestic financial system”,
He cited the finding in a report by the Central Bank of Ireland in May on the reasons for the higher SVRs here: elevated credit risks in Ireland due to the still-high levels of nonperforming loans and the lengthy and uncertain process around collateral recovery, a lack of competition due to the higher credit risks and bank profitability being constrained by legacy issues.
“We fully concur with this analysis,” Mr Buti said.
Squeezing mortgage interest rates through “political pressure” could undermine the progress made by Ireland towards “healing the domestic financial system”,
He cited the finding in a report by the Central Bank of Ireland in May on the reasons for the higher SVRs here: elevated credit risks in Ireland due to the still-high levels of nonperforming loans and the lengthy and uncertain process around collateral recovery, a lack of competition due to the higher credit risks and bank profitability being constrained by legacy issues.
“We fully concur with this analysis,” Mr Buti said.