IRISH banks are to put in place a three-month ‘mortgage holiday’ for holders impacted by the coronavirus emergency.
The CEOs from the five main Irish banks – AIB, Bank of Ireland, Permanent TSB, KBC and Ulster Bank – met with the Minister for Finance, Paschal Donohue, to discuss a joint plan.
Banking chiefs are set to sign off on the plan to ease burdens on borrows amid a growing crisis.
It is the first time that Irish banks have agreed an industry-wide payment holiday like this.
in order to support customers affected by the escalating emergency, the banks are to implement a three-month freeze on mortgages.
Banks are also to put a similar arrangement in place for holders of business loans and also for personal customers.
It is possible that the period could extend, with provisions to be put in place in the agreement.
Banks are keen that the measure would not negatively impact on customers’ credit rating, although this is dependent on agreement from the regulators.
In a further measure, banks have increased the amount that can be spent on contactless card transactions from €30 to €50 in a bid to reduce the level of cash being handles.
Banks have also said that they are to offer emergency working capital loans to businesses whose cashflows have been decimated by the affects of the global pandemic.Tags: