Joe O'Brien
Ceist:404. Deputy Joe O'Brien asked the Minister for Finance if he will be re-engaging with an organisation (details supplied) in relation to a possible further mortgage moratorium for customers. [32479/20]
Amharc ar fhreagraTuesday, 3 November 2020
Ceisteanna (404, 407)
Jim O'Callaghan
Ceist:407. Deputy Jim O'Callaghan asked the Minister for Finance if he plans to bring back mortgage moratoriums for commercial and residential loans; and if he will make a statement on the matter. [32554/20]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 404 and 407 together.
On 18 March last, the Banking and Payments Federation of Ireland (BPFI) announced a coordinated approach by banks and other lenders to help their customers who were economically impacted by the Covid-19 crisis. The measures included flexible loan repayment arrangements where needed, including loan payment breaks initially for a period up to three months and then subsequently extended for up to six months. This was a welcome initiative and it allowed necessary relief to be quickly and efficiently provided to borrowers.
Banks have now provided for flexible options for borrowers who can recommence payments following a Covid-19 payment break, and the BPFI has produced a useful guide on this - www.bpfi.ie/wp-content/uploads/2020/09/Final-BPFI-Coming-off-the-COVID-19-Payment-Break.pdf.
However, I am very conscious that many borrowers continue to be impacted by the economic consequences of Covid-19, and that they may not be in a position to resume their loan repayment commitments when their payment break ends or may be in difficulty now for the first time. I am fully aware of the stress and uncertainty that these borrowers are facing, and they will continue to need assistance and support from their lenders. As the Deputies know, the Tánaiste, the Minister for Public Expenditure and Reform and myself met the CEOs of the country’s retail banks and the Banking Payments Federation Ireland on 28 September to discuss this matter and we indicated that it is particularly vital that lenders work with their customers to ensure that suitable arrangements are put in place to assist their customers who are still experiencing difficulty. The lenders indicated that they will ensure that customers who have difficulties in meeting their loan repayments will be supported with a range of options so that a suitable arrangement can be agreed.
Borrowers have a suite of regulatory protections, such as the Central Bank's Code of Conduct on Mortgage Arrears, and lenders have specific obligations to support and work with borrowers who are continuing to experience mortgage or other loan difficulty because of Covid-19. These options could include additional flexibility, and this could be short term such as additional periods without payments or interest-only repayments, or if appropriate more long term arrangements. The Central Bank has confirmed that there is no regulatory impediment to lenders offering payment breaks to borrowers, providing they are appropriate for the individual borrower circumstance. Each individual’s position is different and that’s why a case-by-case approach is now the best approach as some sectors of the economy are more impacted than others.
I will continue to work with the Central Bank, as regulator, to ensure that the Central Bank consumer protection framework will be fully available to mortgage and other borrowers that will still need support due to the economic impact of Covid-19.
Question No. 405 answered with Question No. 386.
Question No. 406 answered with Question No. 380.
Question No. 407 answered with Question No. 404.
Question No. 408 answered with Question No. 380.
Question No. 409 answered with Question No. 398.