The Department of Finance is expected to tell an Oireachtas committee later today that it shares the Central Bank's grave concerns about draft laws that would require the consent of mortgage holders before their loans could be sold to so-called "vulture funds".
But the Department of Finance warns it may cause financial institutions here to lose their ability to package up and sell on debt to other organisations in order to raise cash. By overriding existing contractual rights for people issuing mortgages to sell them on and introducing unilateral alteration of existing contractual terms for mortgages, the department says it is of the belief that the Bill is unconstitutional.
"However, all of these instruments and techniques are essential, both in relation to performing and non-performing loans , for the funding and, thus the day-to-day functioning of the Irish banking sector," the ECB boss says. The ECB President claims the draft law is being introduced without the benefit of a thorough impact assessment without which it is difficult to be confident that the objectives set by it would be achieved.
LeoVaradkar simoncoveney dail wants it and the public want it while the banking lobby does not. The scare tactics from Lane and Draghi are nonsense. I urge you to support it please.