We continue our European tour closer to home, the Republic of Ireland. Our office is continually receiving enquiries with property owners in Ireland who are trapped in Negative Equity.
It is well know that Ireland suffered heavily during the global recession of 2008 but since then whereas others have grown Ireland has seen little to no growth. Its Government Debt has soared and the country has a Wreckage of a Banking System with many lenders not reacting to the reality of the situation they now find themselves in. Austerity measures have been introduced and consequently criticised due to their lack of effectiveness.
Unemployment increased post – 2008 and although figures have improved these have been masked by the massive trend of outward migration and between 2009 and 2013 228,000 Irish Nationals left the country of which 60% held University degrees. This drain of human capital will undermine potential growth further.
The state of Irish Banking has been much publicised, and given €10bn of the EU-IMF bailout was invested immediately in the banks demonstrates the bailout was really about saving the Banking system. The programme for recovery of the Banking system involved recapitalisation, fundamental downsizing, restructuring and re-organising, leading to smaller banking system in line with the size of the economy and being capitalised in line with international standard.
It was hoped that the Banks would play a role in Economic Recovery in Ireland but to date, this has not materialised and many homeowners in the country have substantial arrears on loans accounts and negative equity issues.
Some banks have begun to address the issue and open dialogue. EU Property Solutions have negotiated some excellent settlements with core Irish Lenders for clients who felt they had no option. With the Banks realisation of action and also a promising change in insolvency law mimicking UK systems now is the time to act on Irish Property Debt. There is no sign of a quick recovery to the Celtic Tiger era and with Banks now repossessing property lenders must not bury their head in the sand.
Contact EU Property Solutions today and rid yourself of any Property Debt Burden. Our advisors are happy to arrange a Skype meeting or travel to discuss your options.