Hayes: Government 'frustrated' over slow bank response to mortgage crisis
The Junior Finance Minister Brian Hayes has said there is frustration in Government when it comes to how slowly the banks are dealing with the mortgage crisis.
He said blanket debt forgiveness is not the answer to the mortgage crisis, but there needs to be debt write-down in some cases.
Mr Hayes said financial institutions have dragged their heels on the issue, mainly because they were waiting for the new Personal Insolvency Legislation.
The banks will meet with officials from the Central Bank next week to give details on the help provided to struggling homeowners so far this year.
Fianna Fáil's Finance Spokesperson Michael McGrath said he is frustrated by the lack of progress on the issue and Minister Hayes says he is not alone.
Mr Hayes said: "The banks have been recapitalised for the purpose of not just restructuring but in some cases write-downs and write-offs.
"He (Michael McGrath) described the frustration in Government, I think he is probably right about that, we have all articulated that.
"I said recently that this year, 2013, must be the year when we start to make real progress on this issue."
