Seán Canney (Galway East, Independent)
Link to this: Individually | In context | Oireachtas source

181. To ask the Minister for Finance if he will request the banks to enter into a temporary postponement of loan repayments as a result of the Covid-19 lockdown; if it will be ensured that these postponements will not affect credit grading and that no penalty will apply; and if he will make a statement on the matter. [3565/21]

Jackie Cahill (Tipperary, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

208. To ask the Minister for Finance if he will extend the mortgage moratorium for those who are significantly affected financially by the current Covid-19-related economic lockdown (details supplied); and if he will make a statement on the matter. [4013/21]

Neale Richmond (Dublin Rathdown, Fine Gael)
Link to this: Individually | In context | Oireachtas source

219. To ask the Minister for Finance if he has considered extending mortgage breaks for workers of the aviation industry due to the impact of the Covid-19 crisis; and if he will make a statement on the matter. [4142/21]

Neasa Hourigan (Dublin Central, Green Party)
Link to this: Individually | In context | Oireachtas source

229. To ask the Minister for Finance the recent engagements he has had with an organisation (details supplied) concerning mortgage payment breaks for borrowers affected by Covid-19; and if he will make a statement on the matter. [4349/21]

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

I propose to take Questions Nos. 181, 208, 219 and 229 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. The implementation of this voluntary moratorium by the banking industry was a flexible response to the emerging COVID-19 crisis and ensured that a large volume of affected customers could benefit quickly during a fast moving and evolving public health crisis.

While many borrowers whose payment break has ended have been able to return to full payments, it is also recognised that many borrowers continue to be impacted by the economic consequences of Covid-19 and they may not be in a position to resume their loan repayment commitments when their payment break ends or may now be in difficulty for the first time.

Deputies will be aware that 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. The BPFI has also reiterated this month that standard payment breaks continue to be part of the wide range of tailored solutions which are being made available to customers upon assessment of their situation. It is in the best long term interests of both the borrower and lender that engagement takes place in relation to a particular loan difficulty and that the most appropriate solution to the individual case is adopted as soon as possible.

Borrowers have a suite of regulatory protections, such as the Central Bank's Code of Conduct on Mortgage Arrears and the Consumer Protection Code, and lenders have specific obligations to support and work with borrowers who are continuing to experience loan difficulty because of Covid-19. The 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.

Regarding the Central Credit Register (CCR), it is important to note that the CCR does not produce credit gradings, rather its purpose is to provide factual information to lenders and borrowers on a borrower’s credit record. The Central Bank has also advised lenders that in their reporting to the CCR, they will need to apply judgement around whether a restructure has been agreed in response to an identification of financial distress and should be reported as such.

Through ongoing engagement with the BPFI and lenders, the Central Bank is working to ensure that borrowers affected by COVID-19 continue to be supported through this period of unprecedented stress. The Central Bank recently wrote to all lenders indicating that lenders are to ensure that they have sufficient expert resources to assess individual borrower circumstances, and to offer appropriate and sustainable solutions to affected borrowers in a timely manner in line with regulatory requirements and Central Bank expectations.

I will continue to work with the Central Bank, as regulator, to ensure that the Central Bank consumer protection and other applicable frameworks will be fully available to all borrowers that will still need support.