# Leaders questions on the 17th of OCT re - Bank Veto in Personal Insolvency Bill



## SteveS (25 Oct 2012)

Did anybody else see leaders questions on the 17th of October were the personal insolvency bill bank veto was discussed. Enda Kenny stated that "there was no veto in there" when the bill becomes active on the first of march next year and also stated that the banks do not have a veto in another enagaement with the same minister Michael Martin. 

I dont know if this is all just a play on words where everybody in the country calls the voting right of the banks and lenders both unsercured and sercured, a veto and the government being the only ones that dont define this facility as a veto but if it is true, it seemed to me that the banks were not getting to call all the shots and be in complete control in this bill as was orginally understood and transcibed when published. Based on Enda Kenny's Statement on the matter. 

The above is probably just a desparate hope/observation of someone who will be availing of the bill regardless when it is available (dont have any choice)but I wanted to get the views of any interested parties. 

For reference I new to the site so cant yet post urls but the above mentioned leaders questions can be found on the RTE player on the 17th of October and the piece I an refering to primarily between the 15 minute and 17 minute of the session.


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## Brendan Burgess (25 Oct 2012)

Hi Steve

The Taoiseach is clearly wrong.  I suspect that he doesn't understand the bill. You can find his comments here.

The Taoiseach:  The  banks have been given no veto.  Committee Stage of the Personal  Insolvency Bill was completed in September.  As Deputy Martin is aware,  the personal insolvency arrangements constitute a mechanism to arrive at  a resolution in every case - in appropriate circumstances, debt  forgiveness or write-down.  If the banks do not sit down with their  clients, the client will be by law be given the opportunity to go  through the insolvency arrangements which, as we know, is complex  legislation but which will be in operation from 1 March 2013.  Everybody  knows the pressure people are under.  Quite a number of mortgages have  been restructured or rearranged but not enough is being done.  This is  why the Central Bank required the banks to submit to it what they  proposed to do on a timeline basis by September.  So they had better do  so because the insolvency legislation is moving through the Dáil and be  operative from 1 March.

(The written record seems a bit different from the acutal version which you can see here
 

    The Taoiseach:  There is no veto in the legislation, which allows for debt write-down or forgiveness.


    Deputy Micheál Martin:  It gives banks a veto.


    The Taoiseach: The  banks are forewarned that clients have the opportunity to go through  the insolvency arrangements if the banks do not sit down and reach a  conclusion.  Deputy Martin is wrong in his assertions.


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