# Funding given to banks to address mortgage arrears



## EmmMaj (25 Mar 2018)

Does anyone remember the Irish banks being given government funding to deal specifically with mortgage arrears cases?

Putting aside the fact that huge sums of public money and debt has been shoveled into lots of  banks to keep them afloat, were they not given additional direct funding in order to specifically deal with / write down / restructure etc.  their bad mortgage books?  

I seem to remember that being the case but it’s very hard to find information about it now. Lost in the mists of time or conveniently forgotten about.  I may be misremembering of course but I get the impression that this money was just used by the banks to help repair their balance sheets and not for the purpose it was allocated.

I'm hoping to get a link to any report or detail about this as I need to write to my local public representatives about the current situation with PTSB and the Project Glas sale.  My partner has one of the mortgages that has been restructured and is performing under the MARP process and it seems wrong to me that these 3,500 homes are being sold on.

Thanks
Emmet


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## Brendan Burgess (25 Mar 2018)

What are you suggesting? 

The taxpayer put money into ptsb so therefore your partner should have her mortgage written down at the expense of taxpayers? 

It was put into the banks to boost their capital so that they would not go bust and so that they could return to normal lending in the economy.  

The problem is that the ECB has stupid rules which classify your partner's loan as non-performing.  Therefore ptsb has to sell it off. ptsb does not want to sell it off. 

By all means contact your TD. But tell them to put pressure on the Central Bank to stop this stupid thing.

And while you are speaking to your TD call on them to allow the banks to repossess houses where people are paying nothing.  If they are allowed to repossess it will be better for everyone. 

Brendan


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## EmmMaj (25 Mar 2018)

I wasn't suggesting anything of the sort but thank you for for the prompt if caustic and unhelpful reply.


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## Jim2007 (25 Mar 2018)

EmmMaj said:


> Putting aside the fact that huge sums of public money and debt has been shoveled into lots of banks to keep them afloat, were they not given additional direct funding in order to specifically deal with / write down / restructure etc. their bad mortgage books



Other wise know as taxpayers money.



EmmMaj said:


> I wasn't suggesting anything of the sort but thank you for for the prompt if caustic and unhelpful reply.



Yes you were.


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## EmmMaj (25 Mar 2018)

Another unhelpful post.

I am simply trying to find out if there was a second tranche of taxpayer funding that was given to the banks to be used for dealing with mortgage arrears cases.  If that were the case then PTSB selling on performing restructured loans as NPLs seems worrisome, at least to me.  If I can find out the answer I'll post it on this thread as it doesn't seem to be going anywhere useful.


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## RedOnion (25 Mar 2018)

Just because posters don't agree to your narrative doesn't make them unhelpful.

The banks were funded through either:
Loans, which should be repaid, or
An equity investment, which the state should try to recoup by selling their share.

PTSB resolving their high NPL ratios is the best chance we have of the state ever being able to sell their shares, and recover the investment made by the Irish tax payer.


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## cremeegg (25 Mar 2018)

EmmMaj said:


> I am simply trying to find out if there was a second tranche of taxpayer funding that was given to the banks to be used for dealing with mortgage arrears cases.



As far as I am aware the banks were funded to allow them to continue to operate. 

That meant they met their liabilities, to depositors and debt holders, and maintained adequate capital to continue lending.

The concept of the banks being given money to "deal with mortgage arrears" does not really mean anything. They were given money for the future not the past.


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