Sinn Féin Finance Spokesperson Pearse Doherty TD has said this week’s IMF report shows that the government has chosen repossession of family homes as a policy.
The International Monetary Fund highlighted the “lack of progress” by banks and the dangers of the country’s debt becoming unsustainable if growth forecasts are missed.
The fund has criticised Irish banks for “inadequate progress” in dealing with non-performing loans.
In its latest review of Ireland’s bailout programme, the fund also raises concerns that banks are losing money even before putting cash aside to cover bad loans.
The IMF states that lenders are “only beginning to tackle non-performing loans”.
It says repossessions are low at 0.3% of total mortgage arrears in 2012, compared to 3.25% in Britain and the United States.
Deputy Doherty said: “This week’s IMF report is explicit in stating that the government has committed to going beyond simply reversing the Dunne Judgement.
“The announcement, at the behest of the Troika, that the Dunne judgment will be reversed by legislation caused a great deal of worry among people struggling to pay their mortgages. It is clear from the IMF report that this will only be the first step.
“The IMF states ‘In addition, the authorities will keep repossession experience under review, and quickly bring forward appropriate measures to address any problems regarding the length, predictability, and cost of proceedings’.
“This amounts to a commitment to pursue a policy of repossessions.
“Two years into this government and the mortgage crisis is spiralling out of control. The numbers in arrears of over 90 days has nearly doubled under Fine Gael and Labour’s watch.
“Sinn Féin has called for solutions on a case-by-case basis including write-downs where necessary. An independent body needs to be put in place to force banks to make sustainable deals.
“I am calling on the government to state what further options they are considering to facilitate repossessions. They must admit now that they have chosen repossessions as a policy.
“Once again the government, like its predecessor, has put bank’s interests first.”