ECB rate cut only adds to banks' tracker woes
Published 08/11/2013 | 02:00
For the 375,000 lucky homeowners who hold tracker mortgages, the news that the European Central Bank (ECB) has reduced interest rates to 0.25pc is an early Christmas present that should shave up to €30 a month off a €250,000 mortgage.
But for the banks and the Government, this attempt to stimulate spending in the wider European economy only adds to a financial migraine that shows no sign of abating.
The state-owned AIB and Permanent TSB, as well as Bank of Ireland and Ulster Bank have roughly €70bn in tracker mortgages between them, accounting for about 66pc of the combined financial institutions mortgage loan books.