Irish Left with ‘Hell of a Hangover’ After Bust, Minister Says

Ireland was left “with a hell of a hangover that will take some time to resolve,” after a real- estate bubble collapsed, said Brian Hayes, a minister at Ireland’s finance ministry.

“In fact in some parts of the country house prices are below current replacement costs, which is an indicator that values might have fallen below reasonable long-term value,” he said in a speech in Dublin. “In the interest of future stability we also need to look at best practice in the provision of mortgage finance.”

“Is it wise for instance to have variable interest rates for a principal private residence?,” he said. “Would it not be wiser to insist on fixed interest mortgages in this specific sector?”

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