Public banking on good sense
Published 01/09/2011 | 05:00
Perhaps the most sensible thing said so far in the great "debt forgiveness" debate came from the Fine Gael backbench TD John Deasy, who accused government ministers of loose talk and giving false hope to stressed homebuyers.
He is right, but so is the banker who told this newspaper that there is a serious issue of debt overhanging the economy, and that solutions have to be found. Finding solutions which do not make matters worse will be as delicate a political manoeuvre as any government has ever had to face.
As our investigation in today's newspaper shows, banks are quietly making arrangements with customers who are unable to meet their repayments in full -- or even with some who can but who are trapped in negative equity.