Posted October 24, 2019 07:23:46An asset sale will now be used to buy back a portion of the country’s public debt, as the Government looks to stimulate the economy and ensure the debt service is kept to a minimum.
Speaking at the launch of the Assets Acceptance Fund, Minister for Agriculture and Rural Development, Simon Coveney, said that by investing in housing, infrastructure and agriculture, the Government would help people buy back assets to help maintain their purchasing power.
“I think we need to recognise that we are not going to solve this problem through a simple property market,” he said.
“Instead, we need a different approach that focuses on helping people buy property and then buying back that property to maintain the balance of payments and make sure that the debts are not being held by a small number of people, but by the country as a whole.”
The Fund will allow the Government to purchase up to 20 per cent of Irish assets, such as homes, land and agricultural land, and invest that money in a property market for the benefit of consumers and businesses.
In addition to the initial 20 per% of the total Irish debt, the Fund will be used for the purchase of up to 1.8 million properties, to support small and medium-sized enterprises.
The Government hopes the Fund can help boost the economy by providing low-cost financing for construction, and increase the availability of capital for businesses.
A new Property Market Fund will also be launched to help Irish businesses and households purchase properties for themselves, which will be funded from an additional 10 per cent, with the money used to build, repair and improve housing, provide for infrastructure and help build jobs.
The Fund is part of the Government’s plan to encourage businesses to invest in housing.
“We will make sure we have a capital investment package that will stimulate the housing market and the capital market,” Mr CovenEY said.