Recognising that we have neither the monopoly of wisdom on what solutions can be found, nor the detailed borrower information to design solutions for tens of thousands of borrower, the Central Bank will leave a lot of discretion to banks in designing solutions that work for both borrower and lender. But the solutions must be sustainable.
Good contract design will be needed and can help limit the number of involuntary repossessions of owner occupier houses, while protecting the capital so expensively injected into the banks by the State (thereby reducing the burden on taxpayers and those depending on public services).