Réada Cronin (Kildare North, Sinn Fein)
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234. To ask the Minister for Finance the additional forbearance he will be requiring of the banks on mortgage repayments for those employed and self-employed workers affected by the second lockdown, the third in County Kildare, in order for them to keep their homes; and if he will make a statement on the matter. [42573/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am conscious that, despite the fact that our economy is now reopening, many borrowers continue to be impacted by the economic consequences of Covid-19, and 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 Deputy will know, 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 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 a short term arrangement 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.

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.