Bloomberg News

Irish Central Bank Said to Press Lenders to Hold Home Loan Rates

October 14, 2011

Oct. 14 (Bloomberg) -- Ireland’s central bank is pressing lenders to halt increasing variable interest rates on home loans, as mortgage arrears rise, a person with knowledge of the matter said.

Matthew Elderfield, the bank’s head of financial regulation, will detail initiatives on mortgage arrears in a speech in Cork, southern Ireland today.

The share of Irish private home loans more than 90 days in arrears or restructured rose to 12 percent in the three months through June, according to central bank data.

“While the Central Bank Governor does not have the power to cap interest rates, he may seek a public policy response to the issue,” said Goodbody Stockbrokers analyst Eamonn Hughes in a note to clients today. “We expect to hear further details when Elderfield addresses the Association of Compliance Officers today.”

The Irish Independent and broadcaster RTE first reported the move today.

To contact the editor responsible for this story: Dara Doyle at ddoyle1@bloomberg.net


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