Central Bank announces tough targets for lenders on mortgages

on 13/03/2013 14:05:56

The Central Bank will impose tough new targets on lenders to deal with mortgage customers struggling with arrears.

As part of a wide-ranging plan announced today, the main banks have been told they must meet the targets or face having tougher capital measures imposed on them.

AIB, ACC Bank, Bank of Ireland, KBC Bank, Ulster Bank and Permanent TSB will have to offer long-term sustainable loan restructuring to 20% of their customers, more than 90 days in arrears by the end of June.

By the end of this year long-terms deals will have to be offered to half of the banks' struggling borrowers.

The bank is not specifying the options to be put to borrowers, but they have said there will be no widespread debt forgiveness for those in debt.