Debt solutions can extend to retirement years - Central Bank Governor

Wednesday 30 April 2014 16.25
Governor Honohan said a solution extending into retirement may not be ideal for everyone but could suit some
Governor Honohan said a solution extending into retirement may not be ideal for everyone but could suit some

Debt solutions could involve a customer paying back their loan past retirement age, the Central Bank governor has told the Joint Oireachtas Committee on Finance.  

Responding to a question from Committee chair and Labour TD Ciaran Lynch, Patrick Honohan said he would put it on record that solutions could go into retirement.

He said the banks had not been clear on this so far.

Mr Honohan said it may not be the ideal solution for everyone, but if someone could sustain payments into retirement then they may be allowed to do so.

Mr Lynch asked if the governor would make a statement on that matter and Mr Honohan said he would. 

Sinn Féin TD Mary Lou McDonald clashed sharply with Mr Honohan during the hearing.
 
She accused the Central Bank of having a hands-off approach to the arrears problem, and said Mr Honohan had a flippant attitude in terms of the legal letters that were being sent to people in mortgage arrears. 

Mr Honohan rejected her claims and said he agreed that those in arrears were going through a frightening process.