“The Chair of the Board of the Single Supervisory Mechanism (SSM), Danièle Nouy informed me that she is confident that Permanent TSB will find a solution to capital shortfall problems and attract private investment,” Brian Hayes MEP said today.
Speaking at an Economic and Monetary Affairs Committee hearing in the European Parliament today (Monday), MEP Hayes said: “I welcome Ms. Nouy’s comments about Permanent TSB and I think it is important that the ECB work with the new Single Supervisory Mechanism to assist the bank as they try to resolve their capital shortfall issues.”
“PTSB has to submit plans to the ECB by November 9th to show how it will address its capital shortfall in a nine month period and the crucial issue is how the bank will attract private investment,” added Mr. Hayes.
Mr. Hayes also questioned Ms. Nouy on her recent comments welcoming the Central Bank of Ireland’s proposed plans to introduce a 20% down payment requirement for home buyers.
“Ms Nouy confirmed that she is supportive of the Central Bank’s 20% proposal as well as the proposal to cap the loan-to-income ratio at 3.5 times a person’s salary. I accept that it is important to have a prudential lending policy but we should not have the case where first-time buyers are priced out of the market because they cannot obtain an initial down payment.”
“I think the Central Bank needs to reconsider the proposed rules. It is envisaged that homebuyers will only be able to borrow no more than 3.5 times their annual income – this is much more restrictive than many other countries including the UK, where the loan-to-income ratio is capped at 4.5 times annual income,” concluded Mr. Hayes.