The governor of the Central Bank says banks should try to come to arrangements with struggling home-owners, without utilising proposed new legislation on personal debt.
Speaking at the Limerick Law Society, Patrick Honohan last night said the Central Bank was encouraging financial institutions to engage with borrowers, and has increased its monitoring of these efforts.
He also said that they should be less inhibited about repossessing investment properties.
But Patrick Honohan says the numbers of home repossessions in Ireland is very low, which he believes is correct.
