Sinn Fein has raised questions over the Housing Finance Agency lending money to Dublin City Council (DCC) to provide home loans, however it will now distribute money to develop new homes.

Dublin City Councillor Noeleen Reilly described it as a "curious situation".

She said: "I was told approval would have to be given by both the Department of Finance and the Department Housing, Planning and Local government and that Dublin may not be an attractive market, but it's ok to lend for mortgages which has arrears of €15 million.

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"It makes no sense that they would lend to DCC for home loans, but not building. Questions need to be asked of both departments and Dublin City Council housing department.

"We are the largest local authority and have fixed assets of over €10 billion.

"Small scale housing associations can borrow money, so why can't Dublin City Council with such a huge portfolio of assets to act as collateral borrow to build."

(CD/MH)