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Ó Caoláin says "warnings not enough" on debt problems

12 July, 2005

Sinn Féin spokesperson on Finance, Caoimhghin Ó Caoláin TD has said today’s annual  report by the Central Bank and yesterday's ESRI report indicate the increasing  problem  of  indebtedness  for  many  people  and that “growing
numbers  of  people  are  leaving  themselves  very  vulnerable to even the slightest rise in interest rates".

Deputy  Ó  Caoláin  said:  "These  warnings  about indebtedness have become annual  events  but they are not enough. The problem needs to be addressed.People  need  to  be fully informed of all the consquences of indebtedness. One  of  the recommendations of the recent Banking Report of the Oireachtas Joint  Committee  on  Finance  and the Public Service was for the Financial Regulator  to  review the lending criteria of banks with a view to ensuring
that  they  can  identify applicants with a high risk of over indebtedness. This recommendation should be acted upon.

"The Report also recommended that the credit institutions should contribute €5  million  per  annum to the Money Advice and Budgeting Service (MABS) to enable  it  to  extend  its  work  in helping people who are over indebted.
Again, the Minister for Finance should act on this recommendation." ENDS

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