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Government must ensure moratorium on mortgage repayments for duration of Guarantee Scheme – Morgan

4 December, 2008


Sinn Féin Finance Spokesperson Arthur Morgan TD today called on the Government to ensure that no foreclosures take place on properties of people who get into financial difficulties as a result of the economic downturn for the duration of the Guarantee Scheme with the banks which is two years.

He said, "The Government has the power under the terms of the Guarantee Scheme to deal with the impending mortgage crisis. They must ensure that no foreclosures take place on properties of people who get into financial difficulties as a result of the economic downturn for the duration of the Guarantee Scheme with the banks which is two years.

"The Government should look at the mortgage support scheme announced in England yesterday and show families the same level support that the Government showed to the banking sector.

"While certain banks have stated that they will now wait 6 months before foreclosure on customers this is inadequate in light of the prolonged economic difficulties that we are now facing.

"The foreclosure of people's homes will perpetuate economic problems, plunging more families into poverty. Unemployment is now expected to top 10% next year.

"Under the terms of the Guarantee Scheme the Government is in a position to direct the banks not to make any foreclosures for the next 24 months and should do so immediately to ease the concerns of the thousands of families with uncertain futures due to the economic downturn." ENDS

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