Central Bank Forces PTSB to Sell Loans, Potentially Putting Tenants at Risk

By Patrick Brogan

 

Yesterday, Minister for Finance Pascal Donohoe said that the Central Bank told Permanent TSB to sell off under performing loans in a bid to avoid a financial crash like the one in the previous decade. 14,000 private homes are connected to these loans.

Commentators are looking for assurances that the people living in these houses will not be forced out of their homes through a quick sale by whoever buys the properties. Members of homeless advocacy groups have been vocal in their condemnation of the move. They said that anyone buying the homes will only be interesting in short-term profits and won’t want to go down the road of long-term rent deals with the current inhabitants.

Pascal Donohoe said the rights of the current tenants will not be impacted. The Government itself holds 75% of the shares in PTSB. It is interesting to note that Central Bank policy may be putting people at risk of going homeless, this, at at time when thousands have been made homeless and others are finding it difficult to find places to buy or rent. The Central Bank is part of the European System of Central Banks (ESCB) and is therefor answerable to both the EU and Irish Government, in theory anyway. Here we have an example of both these entities potentially putting Irish people at risk of losing their homes.

 

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