One of the ideas proposed by the Government to deal with those in situations of heavy arrears is to offer them taxpayer-funded State support.
But such proposal, which essentially means pumping more public money into private banks, has been severely criticized by Fianna Fail finance spokesman Michael McGrath, who said it amounts to “another bailout of the banks by responsible taxpayers”.
The controversial p!an is being considered as part of a series of raft of measures in a package being worked on by the Government to deal with the mortgage-arrears crisis.
Under such proposal, the Government would offer ongoing State support to homeowners who cannot afford to repay their debts, to enable to retain ownership of their properties.
Banks would have to agree to restructure the mortgage, and in return, they would receive a State ‘top-up repayment’.
Mr. McGrath said “Such a policy is letting the banks off the hook again, it is a direct transfer from the taxpayer to banks which have already been handsomely capitalised at the same taxpayer’s expense.”
He added that ‘Fine Gael and Labour need to learn that resolving mortgage arrears is the banks’ responsibility, not the taxpayers.’