Speaking in response to the Moody Mortgage report which predicts that mortgage distress will peak at 20% in 2013, Sinn Féin finance spokesperson Pearse Doherty has called for "urgent action by Government to assist those in mortgage distress".

Deputy Doherty said: "This report on the mortgage crisis by Moody's makes for depressing reading. It confirms what many of us have been saying for over a year, that the mortgage crisis is getting worse.

"However the Moody report predicts a much faster rate of increase in mortgage distress that many of us thought possible.

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"The reason why this problem is getting worse is very simple. Government inaction is driving more and more people into arrears.

"Fine Gael and Labour promised urgent action on mortgage distress when they took office. Yet to date almost nothing has been done to assist struggling home owners. The personal insolvency will do nothing for the vast majority of people in mortgage distress. The Keane report remains unimplemented. And worse, the Government continues to allow the banks to dictate the agenda.

"The Moody's report argues that 'debt forgiveness' is now the only realistic option for people in serious mortgage distress.

“I am once again calling for the Government to introduce an independent and legally binding debt restructuring process for distressed mortgage holders to enable people to remain in their family homes were possible and where this is not possible to provide people with real pathways to alternative housing options."

(CD)