Thousands of homeowners across Donegal and the rest of Ireland face mortgage default within days if banks do not extend pandemic payment breaks.
Donegal Deputy Pearse Doherty said tens of thousands of businesses would be in a similarly perilous position if they were faced with having to resume loan payments next month.
The Sinn Fein TD told the Dail the banks must extend the pandemic payment breaks to protect business and homeowners.
He urged the Government to work with the main retail banks and other lenders to ensure payment breaks offered since March were extended beyond September 30.
The European Banking Authority has set September 30 as the deadline for applications to avail of a payment break for loans or mortgages.
Doherty said if banks announced extended payment breaks before that date it would mean customers would not be in default and their credit rating would not be hit.
The Donegal TD said: “Our banks and non-bank lenders must extend payment breaks before then or many of these borrowers will fall into default.
“We are quickly running out of time.”
He added: “We are in a unique situation. Tens of thousands of homeowners will fall into default in the coming days.
“Tens of thousands of businesses have people who cannot go back to work and who have loans in respect of which the banks will start asking for full payment.”
Doherty said the Government was leaving it too late to act adding “The Government should do the right thing and not leave it until the last minute..
“I cannot understand why it has come down to the wire. We need to protect these borrowers, homeowners, businesses and entrepreneurs.”
Green Party leader Eamon Ryan, responding on behalf of the Government during Leaders’ questions, acknowledged the difficulties many homeowners and business owners were facing as a consequence of the health emergency.
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