Measures are to be introduced to allow mortgage lenders, on a case-by-case basis, to write off portions of mortgages.

Minister for Finance Michael Noonan said that there are thousands of people who do not want to be insolvent or bankrupt, but are finding it very hard to pay their loans.   Noonan says the Central Bank will now ensure that for these people, settlement arrangements are arrived at - including write-offs if necessary.

The announcement came as the Government revealed details of the bankruptcy reform, with the bankruptcy period being reduced from 12 to 3 years.

You can read more information on breakingnews.ie or - in detail - on justice.ie