Donegal TD Pearse Doherty has criticised the government for refusing to provide relief for mortgage holders.
The European Banking Authority gave the green light for the reactivation of Covid-19 payment breaks on 2nd December.
The Sinn Féin Finance spokesperson said the government has been “slow and unresponsive” on relaxing the rules.
Teachta Doherty said: “On 2nd December, the European Banking Authority reactivated its Covid-19 payment break guidelines to provide support and relief to borrowers.
“This would have allowed the government and the banks to put in place payment break extensions for the duration of the latest round of public health restrictions, with an application deadline of 31st March.
“This would have allowed banks to provide payment breaks without charging additional interest or impacting the credit records of borrowers. However, the government have refused to secure or even seek this extension for mortgage-holders and SMEs.
“This is despite so many workers and families being under significant financial pressure due to Level 5 restrictions.
Deputy Doherty’s comments come as borrowers continue to feel the financial strain of Level 5 restrictions, with a survey from the Music and Entertainment Association of Ireland finding that over 20 percent of its members are struggling to meet their mortgage payments and 39 percent are struggling to repay business loans.
“The reintroduction of targeted Covid-19 payment breaks would provide real relief to such borrowers, but they are being denied this relief by a slow and unresponsive government,” he said.