The Central Bank will take a decision on the government’s controversial shared share program in November.
Outgoing Minister Darragh O’Brien was forced to clarify his remarks after opposition parties accused him of “misleading” the Dáil when he said in June that the bill had been “passed” and “received approval” from the Central Bank.
Mr O’Brien said his remarks referred to the program designed as an equity product as opposed to debt to the home buyer, as the central bank confirmed it is still considering the program.
It can now be revealed that the Central Bank will make a decision on the scheme in November.
It is expected to be able to signal whether it allows the pillar banks to participate in the program.
Central Bank Financial Stability Director Vasileios Madouros said findings on the program would be released as part of the annual review of mortgage measures in a letter sent to Sinn Féin TD Eoin Ó Broin.
The shared action program – a crucial part of the government’s recently released multibillion-dollar plan for universal housing, which aims to alleviate the housing crisis – has raised concerns both from the Research Institute and the Central Bank that it could raise the price of housing. prices.
Mr. Madouros added that the Central Bank’s “focus and approach” will be “consistent” with previous correspondence with the Oireachtas Housing Committee.
Last March, he raised serious concerns that the program could straddle debt buyers and push up house prices.
Mr Ó Broin, spokesperson for Sinn Féin for housing, previously called for the abolition of the “reckless” program.
“We are eagerly awaiting the decision of the Central Bank regarding the participation of banks in the equity lending program,” he said.
“Our position remains the same – we think this is a very bad plan, it will add to house price inflation.
“The government would do much better to spend this money on affordable housing. ”