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Interest rate hikes another assault on ordinary people – Morgan

20 July, 2010

Speaking today after it was revealed that a string of lenders are going to hike interest rates by around 0.5% on mortgages within weeks, Sinn Féin Spokesperson on Finance Arthur Morgan has said that these planned increases are another assault on ordinary people who have already paid a heavy price for bailing out the banks.

Deputy Morgan also reiterated Sinn Féin’s call for a State bank to ensure low cost services to Irish households.

Deputy Morgan said:

“Moves by EBS to increase its mortgage interest rates last week have set a precedent for other financial institutions in this State. Today’s news that four other lenders are set to increase their interest rates next month is another assault on the ordinary people of this State who have already paid a heavy price for bailing out the banking sector.

“Ireland’s credit rating has been downgraded once more because of the Governments bank bailouts, we have a budget deficit originating in correcting this morally corrupt banking sector and the burden of NAMA will be a generational debt for the citizens of this State. The banks of this State are systemically rotten and their profit-driven motivations have, and are continuing to cripple the Irish economy.

“The reality of today’s revelations of further interest increases is the equivalent to having to work one extra month a year to pay the increase. For citizens who have bailed out this very banking sector and who are facing another crippling budget because of the hole left in the public finances because of bank recapitalisations, this is a callous and cruel move by the banks.

“Sinn Féin has been vocal in calling for a state bank and the need for nationalisation of AIB and Bank of Ireland could never be more essential than today. We need a bank that will offer low cost services to Irish households, funding new homes, lowering the costs of paying for existing ones. In return for the recapitalisation of these banks, ordinary taxpayers have been dealt a series of blows to their personal finances.

“It is truly illogical that the banks can seek public money to rescue them but their profit motivation overrides the public interest. We need nationalisation and a State Bank to make sure that individuals and businesses have access to credit at fair rates and we need to make sure the state continues to have its own bank well into the future.” ENDS

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