Ireland: Financial Sector Assessment Program-Technical Note on Insolvency and Creditor Rights

July 27, 2022

Preview Citation

Format: Chicago

Ireland: Financial Sector Assessment Program-Technical Note on Insolvency and Creditor Rights, (USA: International Monetary Fund, 2022) accessed December 22, 2024

Summary

This note analyzes select aspects of the system for insolvency and creditors’ rights in the context of an overall assessment of the Irish financial sector. It focuses on two areas: (1) the use and effectiveness of the corporate restructuring regime and (2) the resolution of mortgage related nonperforming loan NPLs. Ireland’s corporate insolvency regime is largely in line with international best practice, although the regime is little used, and a review is in order. The issue of long-term mortgage arrears is complex and will require further development of an overall strategy, with multiple government bodies playing a role. While mortgage arrears are largely a legacy issue from the 2008 crisis, the failure to fully resolve these arrears has the potential to undermine credit growth and affordability, given the impact on credit risk of higher uncertainty of realizing collateral. The Government should adopt a coordinated, multi-agency strategy for resolving mortgage arrears, informed by the granular data available on the financial situation and debt servicing capacity of borrowers. Published guidance on expected solutions based on financial indicators, and broader social support would be critical to this approach and possible strategy.

Subject: Economic and financial statistics, External debt, Financial crises, Financial institutions, Financial sector policy and analysis, International organization, Monetary policy

Keywords: Arrears, Companies registration office, Corporate insolvency, Data collection, Global, Mortgage ARREARS resolution process, Mortgage lending, Mortgages, PDH mortgage account, Period accounts, Solvency

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2022/238
Stock No:

1IRLEA2022004
ISBN:

9798400215902
ISSN:

1934-7685

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