Minister for Finance Michael Noonan has said introducing an extensive debt forgiveness scheme for those who are in mortgage arrears 'is simply not a realistic option.'
Addressing an Oireachtas committee this morning, Michael Noonan said the issue is complex and said it is clear that there is no magic bullet or one-size-fits-all solution.
He said resolutions must be found on a case-by-case basis through open engagement between the distressed borrower and the lender.
Earlier this week it was revealed that more than 55,000 mortgages are in arrears of more than 90 days.
Mr Noonan said the Government will consider what action is warranted to address the 'increasing problem' once it receives a report into the matter at the end of September.
He also said the planned reform of bankruptcy and debt settlement arrangements are key elements in any consideration of potential policy options.
The minister is today in front of the Finance Committee to discuss the broad economic situation.
He said that growth has returned to the economy and the public finances remain on track.
However, he said the deficit remains unsustainably high and that expenditure reductions and revenue increases will be required in future Budgets.
€3.6bn cuts might 'stretch out a bit'
The minister also ruled out bringing forward the date of the Budget and said the stated scale of adjustment of €3.6bn might "stretch out a bit".
He said the growth forecast of 2.5% for 2012 might have to be revised downward as a result of international factors, but he said at the moment it is too soon to call.
He said provisional figures for August show that Government revenue projections, which are due out soon, are 'on track again'.
Mr Noonan said taxes will have to be increased in December's Budget, but said there was a commitment not to raise income tax.
He said the Government did not want to increases taxes that would cause further unemployment problems.
The Finance Minister also said the interest rate cut on the EU-IMF deal will actually save more money than originally estimated.
