Brendan Griffin (Kerry, Fine Gael)
Link to this: Individually | In context | Oireachtas source

52. To ask the Minister for Finance his views on a matter regarding borrowing by clubs (details supplied); and if he will make a statement on the matter. [39033/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As Minister for Finance, I am very conscious that many borrowers continue to be impacted by the economic consequences of Covid-19, including GAA clubs and other sporting organisations who ordinarily rely on fundraising and gate receipts to fund their operations and meet their loan repayments. Clubs and their members have played an important role in the community response to Covid-19 and I am fully aware of the stress and uncertainty that they may be facing, and that they, like all impacted borrowers, will continue to need assistance and support from their lenders.

As the Deputy will know, at the outset of the pandemic in March, 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. However, each borrower’s position is different and that’s why a case-by-case approach has been adopted as some sectors of the economy are more impacted than others.

The Tánaiste, the Minister for Public Expenditure and Reform and I met the CEOs of the country’s retail banks and the Banking Payments Federation Ireland on 28 September and 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 and lenders have specific obligations to support and work with borrowers who are continuing to experience loan difficulty because of Covid-19. These options could include additional flexibility, and this could be a short term arrangement such as additional periods without payments or interest-only repayments, or if appropriate more long term arrangements.

I will continue to work with the Central Bank, as regulator, to ensure that the Central Bank protection framework will be fully available to all borrowers that will still need support due to the economic impact of Covid-19.