Colm McCarthy: Forgiveness is a virtue not needed by many
Debt relief can further weaken banks, and not all of those in negative equity can't pay, writes Colm McCarthy
Published 19/02/2012 | 05:00
Ireland's debt crisis has resulted in widespread financial pressure on households and small businesses, overshadowed by the headline-grabbing bankruptcies of property moguls.
It is clear that the insolvency laws are out of date, but the proposals from Justice Minister Alan Shatter to update the personal insolvency regime need to be seen in context.
Household mortgage debt is owed in the main to the three principal banks: AIB, Bank of Ireland and Permanent TSB. All three would have closed their doors without Government support.