Dáil Éireann Debate, Tuesday - 16 June 2020
68. Deputy Duncan Smith asked the Minister for Finance if he will implement a moratorium on SME debt and loans in order to help SMEs remain viable during the closures imposed due to the Covid-19 outbreak; and if he will make a statement on the matter. [10696/20]
View answerOne of my main concerns currently is to ensure that SMEs have access to sufficient liquidity, and that access to credit for SMEs is maintained.
While, as Minister for Finance, I have no function in the commercial decisions of banks, given the current COVID-19 crisis I have met with the CEOs of the 5 main banks and the Banking and Payments Federation of Ireland (BPFI). The banks assured me that they are working to ensure a wide range of credit, cash flow and supply chain supports are offered to businesses who are trying to manage the pressures arising from COVID-19. In these meetings I emphasised the important role of the banking sector in supporting the gradual re-opening of the Irish economy by ensuring a flow of credit to businesses as they begin to trade again, in line with the government’s Roadmap for Re-opening Society and Business.
In this regard I welcome the banks most recent announcement, on 30 April, to extend payment breaks to six months for households and businesses which require it and that loan terms may be extended.
The BPFI and its members published a new Guide on Payment Breaks on 28 May, available here: https://www.bpfi.ie/wp-content/uploads/2020/05/BPFI-Guide-to-C-19-Payment-Break.pdf . This guide outlines advice for those who may need a payment break but have not yet taken one or who are reaching the end of the initial 3 month break.
You can be assured that I continue to work to ensure that all necessary supports are available for businesses affected by COVID-19.
