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IMF chief Christine Lagarde signals support for 20pc mortgage deposit requirement

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Christine Lagarde, MD of the International Monetary Fund pictured at a joint press briefing in Government Buildings Pic: Frank Mc Grath

Christine Lagarde, MD of the International Monetary Fund pictured at a joint press briefing in Government Buildings Pic: Frank Mc Grath

Christine Lagarde, MD of the International Monetary Fund pictured at a joint press briefing in Government Buildings Pic: Frank Mc Grath

Christine Lagarde has said that the 20pc mortgage deposit requirement being considered by the Central Bank is a "safe secure solid principle".

The Managing Director of the International Monetary Fund made the comments during an interview with Miriam O’Callaghan on RTÉ’s Prime Time show.

"Many organisations around the world have been operating with such macro prudential principles. Loaned income is. There are various tools you can use but they are necessary,” she said.

Ms Lagarde responded to criticism over her comments about Irish people being the “true heroes” of the bailout. 

"If it hadn’t been for the resilience, the determination and the collective ownership of restoring the economic and financial situation of Ireland it wouldn’t have worked as well as it has," she said.

Ms Lagarde also offered an "interesting" alternative to Europe shouldering some of Ireland’s debt.

"I’m sure the Finance Minister and his team are working on [retroactive recapitalisation ] under which the banks which have been recapitalised with taxpayers money could now be privatised including in various tranches in order to get the taxpayers money bank. And I hope that that is explored in depth.”

“If you can get more money back by privatising those banks that have been re-capitalised over the last few years why not optimise the gain? If it’s a safe route,” she added.

Ms Lagarde told Miriam she hoped the Euro crisis which was "not quite yet" over in the whole euro zone was over in Ireland. 

Online Editors