Ireland: Financial Sector Assessment Program-Technical Note on Insolvency and Creditor Rights
IMF Staff Country Reports, July 27, 2022
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- Ireland: Financial Sector Assessment Program-Technical Note on Insolvency and Creditor Rights
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Bibliographic details
- Published: July 27, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400215902.002
Overview
- Focus: analysis of select aspects of the system for insolvency and creditors’ rights in the context of an overall assessment of the Irish financial sector.
- Two primary areas examined:
- (1) the use and effectiveness of the corporate restructuring regime
- (2) the resolution of mortgage related nonperforming loan NPLs
- Central concern: long-term mortgage arrears are largely a legacy issue from the 2008 crisis but unresolved arrears can undermine credit growth and affordability by increasing uncertainty over realizing collateral.
Findings — Corporate insolvency regime
- Ireland’s corporate insolvency regime is largely in line with international best practice.
- The corporate restructuring regime is little used.
- A review of the corporate insolvency regime is recommended.
Findings — Mortgage-related NPLs and arrears
- Long-term mortgage arrears are complex and involve multiple government bodies.
- Failure to fully resolve long-term mortgage arrears has the potential to undermine credit growth and affordability, through increased credit risk from higher uncertainty about realizing collateral.
- Granular data is available on the financial situation and debt servicing capacity of borrowers, which can inform policy.
Policy recommendations and strategy
- The Government should adopt a coordinated, multi-agency strategy for resolving mortgage arrears.
- Strategy should be:
- Informed by granular borrower-level data on financial situation and debt servicing capacity.
- Accompanied by published guidance on expected solutions based on financial indicators.
- Supported by broader social support measures.
- A review of the corporate restructuring regime is in order to enhance use and effectiveness.
Key publication information and subject tags
- Pages: 28
- Volume: 2022
- Issue: 238
- Series: Country Report No. 2022/238
- DOI: https://doi.org/10.5089/9798400215902.002
- Stock No: 1IRLEA2022004
- ISBN: 9798400215902
- ISSN: 1934-7685
- 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
IMF Staff Country Report — Ireland: Financial Sector Assessment Program-Technical Note on Insolvency and Creditor Rights (July 27, 2022).
Content in this bundle
- Executive Summary