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FINANCE MINISTER MICHAEL Noonan has said that any active pursuit of retroactive recapitalisation of Ireland’s banking system cannot be done until 2015.
Noonan was speaking after a meeting with the head of the eurozone’s permanent bailout fund, the European Stability Mechanism (ESM), Klaus Regling who repeated his belief that he currently cannot foresee unanimous consent to Ireland getting a deal on its bank debt.
The government has been pushing for the use of the ESM to retrospectively recapitalise its pillar banks, AIB and Bank of Ireland, which received billions of euro in State funding at the height of the financial crisis.
Regling has previously indicated that such recapitalisation using the fund that he heads “doesn’t seem very likely” and said today: “There is just a general reluctance in a number of countries to provide financing retroactively, because it’s based then on the past.”
Crucial to any retroactive recapitalisation is the establishment of a Single Supervisory Mechanism for the eurozone which is not likely until November of this year.
“We’ll continue to pursue retroactive recapitalisation of the banks and we will do that actively as soon as the instrument is in place, which means 2015, and at all levels in government we will pursue that as an objective,” Noonan said.
The Minister reiterated the commitment made by European leaders on 29 June 2012 to break the link between the banking debt and the sovereign and said this had been reinforced by subsequent statements from the French and German leaders.
He said: “Obviously we will continue to explore the possibilities of delivering on these commitments but until the instrument is put in place, to which Mr Regling referred, it doesn’t arise. So it’s something for the medium or long-term.”
Noonan said that the State is “not going to wait around” for a deal and will continue to bring down its cash buffers as well as purse any possibilities to sell its estimated €11-12 billion worth of shares in the banks.
“We’re not flying on one wing and simply waiting for European assistance. We have an active policy for dealing with our debt as well.,” the said.
Regling congratulated Ireland on its recent emergence from the Troika programme but said that this successful exit did not mean that it would be more difficult for Ireland to get a bank debt deal.
He said that although he does not see consensus on giving Ireland debt relief there are “many other developments [that are] moving in the right direction and will help reduce the debt burden for the Irish economy and the Irish budget”.
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Thanks to the government – Home is unattainable for masses of people that are not disabled…
And to those that are unfortunate to be disabled should forget getting a home here in Ireland.
@John Johnes: interesting comment John. I mean I think it is really fascinating that anyone would compare the two. I mean the reality is most people in employment can infact purchase a home somewhere but many wish to live in a certain location. The sad reality for many people with disabilities is the limited access to employment, mortgage approval and subsequent life assurance to draw down any mortgage offer they may be offered and of course servicing the mortgage depending on the nature of the disability. This along with genuine restrictions on where one can live, e.g. to be near services, healthcare, supports, functioning public services like transport links etc again depending on the nature of the disability and generalising grossly here. I find it fascinating that anyone would bring on the perceived wows of the “typical” “mainstream” or non disabled person into the sole comment on this article.
@Sarah Lou: yeah but that’s John for you
@Sarah Lou:
Most people in employment can purchase a home? The average wage nationwide is less than 50k, good luck with getting a mortgage that would be enough to buy a house.
@Dean: 50000×3.5 +10% deposit, would get you a home somewhere in Ireland. As I said above most people who say they cant afford a home, mean they cant afford a home where they want to live. Also many if not most people buy a home with 2 incomes statistically, so that is 100000×3.5 + 10% and would buy you a home in many areas. I cant actually believe you think a person on 50k without a disability is in anyway comparable to someone on the Disability Allowance without the ability to earn any wage or secure any mortgage etc. This is a little to me like when people were describing individuals in dublin airport going on their jollies as the third world. Unpleasant Airport experience, definitely not satisfactory or acceptable in Ireland in 2022 but no kids were dying from malnourishment in the airport. Get a little perspective.
Owning a home is only a pipe dream for anyone in Ireland regardless of disability or not
@Ronan Horan: Really? I’m someone in Ireland I’ll be collecting the keys to my new build home by the end of the month.
@Roy Dowling: Roy you have been around here long enough to know noone wants to hear your good news!!!!! Just kidding congrats and well done for highlighting that it’s not all doomsday stuff
Not to minimise the challenges faced by people living with disabilities, but the reason for this is the same reason that numerous other people not living with disabilities, also struggle to find or afford a home, the lack of affordable social housing.
Which is a failure of successive governments across all parties that have been in government in the past and three of whom are currently in government, to build social housing.
Not because the demand hasn’t existed dyring the last 35 years, but because they instead chose to keep house values inflated, by limiting the supply and facilitating property developers and investors to capitalise on the artificially created circumstances of turning houses into assets that out performed all other investment opportunities, great for their cronies, but the knock on effect is that houses are now so overvalued, that hedge funds have bought them up to control the rental market, further inflating the price of rent to levels that even people with good jobs can’t afford to pay.
The only way out of this cul de sac of greed is to elect a government that will deliver social housing on the scale required, this will allow everyone that needs social housing to be housed and also lower the prices of houses and rent across the board to benefit everyone, except property developers and hedge funds.
This socialist solution may be a bitter pill for some to swallow, but the alternative is continuing to watch generations of our children leaving Ireland, because they can’t afford to live here…
@David Van-Standen: We know how this works. Sinn Fein/IRA will promise to fix all our woes, including global famine. But if they do get into power will claim that due to years of mismanagement they are unable to fulfill our dreams and will be worse than those who went before as they’ll have no experience of government. What they have is a well oiled machine to rally voters.
@David Van-Standen: The subject is persons with Disabilities and homelessness.
Yet as usual, people forget the main topic to push their own agenda.
Please stuck to the topic,
The topic is disabled peoples access to housing, nothing else.
If you are not interested in the subject but housing for able people instead comment on an article about that subject, as this is not that article
3d printed housing technolgy may help when it gets going properly. Apparently the build is much much cheaper as labour is significantly reduced.
The first thing we want should be for the Government to lay down rules for banks. With regard to mortgages when on disability allowance Banks should be made give these people the loan they need at a reduced interest rate. They could recoup 50% of their loss on mortgages over one million euro – that’d solve the problem but obviously No politician has the ingenuity to pull this off.
Amazing all these comments by people pushing their own issues and nothing to do with the topic.
Nothing unusual with, disability issues being ignored or worse used to push personal agendas.
Our needs and campaigns are regularly hijacked by able people to promote themselves and their agenda.
Disability rights, issues etc will then be fully ignored again until they see the possibility to use us again.
Noteworthy have worked hard to show the reality of my community and its issues.
Sick of the crocodile tears on here for my community. Not just here either, the hypocrisy of most people in relation to disability inclusion is frightening.
Most of it is by accident but it still has the same affect on us.
Educate yourselves on the topic, beome aware of the people in my community.
Here is a shocking thought, ASK THEM?
Julie Helen
No one can solve the Affordable Housing issue in Ireland until the Referendum on Housing is passed. Only then can the laws be passed to remove all the barriers to enable affordable house building and affordable rents for all Irish citizens.
Current Irish Constitution is ambiguous, vague and open to interpretation which suits all those vested interests in high Rents and high House prices.
New home in France for €160,000 (80K site & 80K house.) not €260,000 in Ireland.
37% of cost of new homes in Ireland is completely artificial and has nothing to do with the cost of build. VAT alone on a new house in Ireland is €28,000 .. none in France.
A Referendum is the only way out for all those locked out of home ownership and rent slaves.
https://www.change.org/p/irish-referendum-on-family-home-special-status
@Neuville-Kepler62F: Please stick to the topic and keep your own agenda to yourself.
the topic is the DISABLED COPMMUNITY and Housing
It could be argued that Homelessness is the new disabled?
have your say