Central Bank sets lenders new restructuring targets

For the first time, banks and building societies will have to have completed sustainable restructures with customers in arrears.

MORTGAGE PROVIDERS MUST have concluded sustainable arrangements with at least 15 per cent of their long-term arrears customers by the end of this year.

The targets laid down by the Central Bank say that that figure must have increased to 25 per cent by March 2014.

This is the first time that the Central Bank has sent lenders targets to have completed deals with mortgage-holders. Previous targets have called for banks to have made offers to those in arrears.

The Central Bank also says that lenders must have attempted to deal with at least 70 per cent of customers by March 2014.

“The Central Bank, in agreement with the Troika, has now set its expectations of the banks in this regard and requires banks to have concluded arrangements with 15 per cent of their over 90-day mortgage arrears customers by end of December 2013,” said the Central Bank statement.

Furthermore, the Central Bank is now setting expectations for end March 2014 for sustainable solutions offered to customers to reach 70 per cent of over 90-day arrears and for concluded solutions to reach 25 per cent.

Read: Allsop signs deal that will stop the auctioning of repossessed homes

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