Mr. Ed Sibley:

I fully agree with the Deputy's observation of the supports required during this difficult time for people, businesses and the country as a whole. We might take as an example someone who works in the retail sector, who will not only potentially lose employment over this period but may also do so again in the future if there are further lockdowns, which were mentioned as a possibility. What is probably best for that borrower is not to go in and out of a series of payment breaks but rather to work out what he or she can afford in that circumstance over a vulnerable period. Understanding that borrower's financial position is critical to ensuring his or her interests will be best served.

Having said that, in the immediacy of now where this issue has come on us quickly, it may well be that a short, interim additional payment break is the best solution for that borrower while the lender, whether a bank or a non-bank, works through the borrower's circumstances and what he or she can afford over the next six to 12 months, given the circumstances the borrower will be operating under. It is certainly our aim to ensure that borrowers, whether businesses or mortgage holders, get the necessary support through this period. If debts continue to grow during this period, it will not necessarily be in the lender's interest. In certain circumstances, an extension of a payment break may well be, but it is better that the creditor understands what is possible and recognises the difficult circumstances and uncertainty.