The latest agreement between the Troika and the Government requires Irish authorities to remove a legal impediment which has stopped banks repossessing properties.
However, Ministers will not introduce the measure until borrowers homes are protected with the enactment of new personal insolvency legislation.
There has been a gap in legislation arising from a court judgment which has slowed the number of repossessions to a trickle.
Last year the High Court found banks cannot apply for a repossession if the mortgage was created before 2009 but demand for repayment was later than 2009.
The judgment exposed a loophole which will now have to be fixed, under the agreement with the Troika.
While an owner occupier‘s home will be protected under the new insolvency legislation, the change is likely to affect buy-to-let properties.
Almost one in three of these mortgages are now in arrears.
The Central Bank wants the banks to speed up their management of the problem.
The document also says that the Government will take steps to deal with the health spending overruns and keep health expenditure below €13.6bn next year.
It says the Commission for Energy Regulation will have responsibility for overseeing the price setting powers of Irish Water.
The Government will also have to set out its methodology for the next round of stress tests for Irish banks.
The agreement with the Troika also says the Irish Government will conduct a study to compare the cost of drugs, prescription practices and the usage of generics in Ireland comparable with EU jurisdictions.
The Troika said last night in Dublin that funds were not readily available to pursue the self-governing process in Ireland, and until the economy improves, the Government should consider postponing all referendums’ and elections. When questioned if this procedure was democratic the retort was you can’t afford it.
They added if this wasteful process continued they would consider withholding further draw down of funds.
When questioned further on the Democratic process Michael Noonan stated that really is a question for the Taoiseach but believed that the process was safe in the hands of the government.
The Taoiseach when quizzed on the matter believed that it was of the utmost importance to maintain Ireland’s credibility with the world’s financial decision-makers, and he would not stray from this route to satisfy the whims of a minority.
The Troika felt that in certain areas, there was on display extremely high levels of incompetence. One senior source claimed the Troika has been “spooked by James Reilly the Minister of Health. They believed Reilly is the boldest boy in the class. Being well-qualified masters, they believe control of the class is of the utmost importance.
They are, likewise, concerned at the worthlessness of the ministers at the core of Government and the overall perceived lack of leadership.
They stated they would support a referendum as to who should rule Ireland.
They are also willing to fund and support a new party called the Bilderberg group. They felt this group knew how to mop up what money remained and to restore Ireland to prosperity but only after a long and intense period of deprivation.
On behalf on the Irish people, The Taoiseach apologised for the gross ineptness of the government.
Given that the governor of the Central Bank, Patrick Honohan has declared, he deems that both senior and junior bondholders should endure the losses of the failed banks. Perhaps the time is now opportune for the authorities to confront the Troika regarding the terms of the bailout.
To quote Honohan
“The extensive socialization of losses – initially through the September 2008 guarantee and subsequently when the troika refused to countenance burden-sharing with the unguaranteed senior bondholders – has been rightly subject to comprehensive criticism.”
Take cognisance of the fact that the Troika bullied Lenihan and Cowan into agreeing to pay the Bondholders.
The question now is whom were the troikas representing? Overall, one gets the impression that their first priority was to ensure and safeguard the interest of the Bondholders. If this is the case, it would appear the interests of the IMF, and the ECB is secondary. Whatever the case may be Ireland suffers at the hand of all three.
The fact that the Trichet letters remain unreleased would seem to reinforce this view that the contents are controversial.
The Governor of the bank on the surface seems to be speaking sense.
Will Michael Noonan have the mettle to confront the Troika over the bailout terms? Will he have the vigour to say we are going to burn the Bondholders?
Maybe the time is now opportune for the citizens of Ireland to petition the Minister to cast adrift the Bondholders.