The Economy

The Economy
14.04.2015

Microfinance Ireland – Change in Lending Terms

As of the 1st of April 2015, businesses seeking loans from Microfinance Ireland (MFI) will no longer require commercial bank refusal before they can apply for lending from the government backed fund. This fund was establish in 2012 by the Irish government to help start-up, new or growing enterprises across all sectors. The Microenterprise Loan…

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03.02.2015

The Central Bank Amended Mortgage Restrictions

The Central Bank have announced an amendment to the mortgage restrictions. Up To 90% For First-time Buyers First-time buyers will be able to borrow 90% up to a value of €220,000. Above this value the 80% limit will apply. The new rules were announced on Tuesday 27 January 2015 and are effective immediately. An example of…

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13.01.2015

What Is A Make-whole Provision?

A make-whole provision is a call provision attached to a bond/ loan. The borrower must make a payment to the lender which is equal to the net present value (NPV) of the coupon or interest payments that the lender will lose should the borrower pay off the bonds/loan early. Example 1. Take an example where

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13.11.2014

ISI and €1 Billion Worth Of Debt

The Insolvency Service of Ireland (ISI) issued its statistics for Qtr 3 2014.  To date in 2014, the ISI has dealt with cases involving c.€1billion. The percentage of debt written off under DSA’s and PIA’s was:- PIA – secured debt – average write off was 17% (range was 0% to 69%) PIA – unsecured debt…

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20.10.2014

Monday Minute: The Central Bank Mortgage Restrictions

The Central Bank have proposed mortgage restrictions for residential mortgage lending in an attempt to reduce the risk of another property market bubble. It is expected the restrictions will be introduced in January 2015. Proposed Restrictions: 1. Loan to Value (LTV) Cap a. Maximum borrowing of 80% of the house value i.e. 20% deposit required.…

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03.07.2014

Upward Only Rent Reviews

Section 132 of the Land and Conveyancing Law reform Act 2009 became effective on 28 February 2010 and it prohibits landlords including upward only provisions in leases.  This has created 2 tiers of leases: Those created pre 28 February 2010 which will continue to have enforceable upward only clauses until the expiration of the lease,…

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22.01.2014

Rise In Permanent Restructure Of Mortgages

The Department of Finance reports monthly on  the restructure  situation in relation to all principal dwelling house (PDH) mortgages whether they are in arrears or not. This report involves the 6 main banks operating in Ireland and who represent 90% of the market – AIB, Bank of Ireland, PTSB, ACC, KBC Ireland & Ulster Bank.…

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18.10.2013

Possible Earlier Filing Date Will Have Cash Flow Consequences

The Institute has been warning for some time that the earlier scheduling of Budget Day required to meet our Euro area obligations would also result in earlier pay and file dates for the self-employed.  As we all know, for many years the Self-Assessment pay and file date has been 31 October, and usually is extended…

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16.10.2013

Budget 2014. Main Tax Changes

As George W. Bush said “It’s clearly a budget. It’s got a lot of numbers in it” In fairness the Finance Minister was faced with a difficult task, he had to reduce the budget deficit by €2.5 billion while trying to stimulate the economy and it is not possible to do this without inflicting some…

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16.10.2013

What Is SEPA And How It Will Affect Your Business

Single Euro Payments Area (SEPA) comes into effect on 1 February 2014 and will standardise Euro electronic payments across Europe.  The countries in the SEPA include all the existing members of the EU, Iceland, Lichtenstein, Monaco, Norway and Switzerland. The aim is to improve the efficiency of cross-border payments and applies to transactions in Euro. …

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