Michael Healy-Rae
Question:104. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding bus tour operators; and if he will make a statement on the matter. [17732/20]
View answerThursday, 23 July 2020
Questions (104)
Written answers
Payment breaks have been provided on a voluntary basis by members of the Banking and Payments Federation of Ireland (BPFI). This allowed lenders to quickly to provide substantial and rapid relief to impacted borrowers during a fast moving and evolving public health crisis. While Government has welcomed this important support provided by members of the BPFI for their business and consumer customers, it is ultimately a decision to be made by the individual finance lenders.Payment breaks are a widespread support being offered by lenders across the European Union and have been implemented on both a legislative and voluntary basis. The European Banking Authority (EBA) issued guidelines on their operation on 2 April 2020, with the aim of clarifying the regulatory treatment of payment moratoria across the EU. The EBA Guidelines prescribe the criteria which both voluntary and legislative moratoria must meet in order for relevant loans not to be classified as defaulted or otherwise forborne. One of the conditions stipulated is that the moratorium envisages only changes to the schedule of payments, namely by suspending, postponing, or reducing the payments of principal amounts, interest, or of full instalments, for a predefined limited period of time. No other terms and conditions of the loan should be changed. In addition, the application of payment breaks cannot be company specific and must be broadly applied.The Central Bank expects all lenders to develop strategies and operational capability to continue to support borrowers who cannot return to full capital and interest after the end of the payment break. This will include offering forbearance as required and restructuring of loans in the event of long-term affordability issues. I would also call on borrowers in this position to engage as early as possible with their lenders.