Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Individual banks can always extend a payment break. They always could and always will be able to do that. However, what it means for customers is that they will be in default and will have a negative credit rating. What it means for the banks is that they will have to hold additional capital. The European Banking Authority has recognised the severity of the Covid-19 pandemic across Europe. The authority has said that if a bank announces a payment break before the end of this month, which is in six days' time, its customers will not be in default and the bank does not hold additional capital.

The Minister talks about how the banks can do this and that and about the consumer protection code. We are in a unique position. Tens of thousands of homeowners will fall into default in the coming days. Tens of thousands of businesses have staff who cannot go back to work and who have loans in respect of which the banks will start asking for full payment. What is the position of the Government? The State is the majority shareholder in Allied Irish Banks and Permanent TSB and a significant shareholder in Bank of Ireland. Does the Minister have a position on this? Does the Government have a position on it? Only six days are left to announce a payment break. Otherwise every borrower will be on his or her own.

The problem is that there is consistency in this. This Government is failing to tackle the meat plants, insurance industry and banks. Who is always left with it? It is the ordinary individuals. There is a system in place that we can avail of. The Government should do the right thing and not leave it until the last minute. I cannot understand why this has come down to the wire. We need to protect these borrowers, homeowners, businesses and entrepreneurs.

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