Central Bank worried about mortgage arrears

The Central Bank has expressed concerns about Ireland's financial status as the country prepares to exit the bailout in just over a week's time.

A report published this morning has warned that houselholds struggling with mortgage arrears could be faced with further financial difficulties if hit with a rise in interest rates or a fall in income.

The review is also in line with the warnings issued by the Fiscal Advisory Council in relation to budget targets.

The financial watchdog warned that lower-than-expected growth rates could mean continued austerity until 2015, while the Central Bank has warned of the possibility of missing fiscal targets because of slower growth.

Meanwhile, the Finance Minister Michael Noonan has said market indifference has vindicated his decision to forego a precautionary line of credit on our exit from the bailout.

Mr Noonan said the financial sector "yawned" at our news.

The Minister says Ireland has buffers of more than €20bn in place to fund the country up until the second quarter of 2015, even without going to the markets.

Speaking at a Bloomberg event in London today, Minister Noonan said we have enhanced our reputation over the three years of the bailout.

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