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Excuse me if this is the wrong forum, In the event of the failure of the EURO which seems to be more likely with every passing week what would happen to mortgage balances if we reverted to the Punt .
Would it be a 1 euro to 1 punt swop for any outstanding balance?
and the same with all money in bank accounts ?
What interest rate would trackers then follow if the ECB bank was no longer active seeing as it was set up in '98 to facilitate the EURO?
How might it all work ?
If someone thought the euro was going to fail what country would it be best to trasfer your savings to in advance of the Punts reintroduction. Germany or somewhere outside the eurozone?
Thanks.
This is something that has come up on a few occasions on aam now. I guess the question is will your mortgage still be in euro? There seemed to be mixed opinions on this. Clearly, if it continued in euro - then everyone would be in deep (or should i say even deeper) water...If tracker rules simply define the rate with referecne to ECB would it make any different if Ireland was booted out?
This is something that has come up on a few occasions on aam now. I guess the question is will your mortgage still be in euro? There seemed to be mixed opinions on this. Clearly, if it continued in euro - then everyone would be in deep (or should i say even deeper) water...
The bank bailout has ensured trackers will be subsidised by variable rate holders from now on.For trackers would the rate still be lets say ECB plus 1% even though the principle and repayments are now in a different currency? If tracker rules simply define the rate with referecne to ECB would it make any different if Ireland was booted out?
The bank bailout has ensured trackers will be subsidised by variable rate holders from now on.
Don't shoot the messenger! I was only bringing it to peoples attention that this discussion has arisen before - and some had suggested that euro debt would remain euro debt (it would be in the banks interests, would it not - if it remained euro debt?)? Please run a search of aam - and have a read of the relevant threads. I would welcome any clarification anyone could provide - as I don't think anyone could provide a definitive answer on this...and it's something that mortgage holders should be up to speed on...mpsox said:Why would it continue in Euro?
If that is the case, won't ALL irish mortgage holders be better off? i.e. punt will go through a series of devaluations - meaning the debt in real terms drops??This same situation arose when the Euro was first introduced to Ireland. I.e. Punt mortgages were exchanged to Euro at the official rate on a set date. If Ireland were to exit the currency an opposite transaction would happen. I suggest that there is no contingency plan as yet for this occurrence.
If it won't then what's it likely to be, who would set it - and presumably the setting of the rate has far reaching implications for many many people....44brendan said:It would not be a 1 for 1 swap?
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