Several of these involved Governmentfinanced subsidies to the banks. In view of the constrained condition of the public finances, the availability of these subsidies will be quantitatively small, and they are likely to be focused (as they should be) on households in low income circumstances. Therefore most of the mortgage restructuring (in terms of total value) will have to be done without subsidy.
Taking account of the unsecured creditors Complications arise where there is multiple indebtedness. Credit unions are unsecured creditors of many distressed borrowers; unsecured debt on credit cards is also found to be high for many borrowers; utility arrears are also commonly observed.