The final report from the Expert Group on Mortgage Arrears and Personal Debt says the group is not recommending a formal debt forgiveness scheme.
The report from the group, chaired by Hugh Cooney, issues recommendations on measures to help in dealing with the difficulties created by the country's growing level of mortgage arrears.
The report has concluded that arrears levels will persist for some time and may get worse before they get better. However, it says that repossession levels in Ireland remain substantially lower than those seen in the UK and it also found that forbearance is working and is having a beneficial impact.
Today's report says that around 90% of mortgage accounts are being repaid in accordance with their contracts and and two thirds of rescheduled loans are paying at least full interest on their accounts.
In the key recommendations in today's final report, the expert group says that a deferred interest scheme should be introduced for borrowers who can pay at least 66% of the interest on their loan. This would give distressed borrowers five years to get back on their feet.
http://www.rte.ie/news/2010/1117/arrears-business.html
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