The Government has issued the following information in relation to tonight’s announcement by the Minister for Finance Paschal Donohoe TD.

Questions and Answers on New Financial Measures to help Individuals and Businesses

How does the three-month break for people and businesses impacted by COVID-19 work?
If you have a loan with a bank, if you’re a mortgage holder or a small business with business loan and if you lose your job or your income is impacted by COVID-19. Five main banks have agreed a 3 month repayment break which enables you to put that worry aside while we deal with this crisis
So those 3 months essentially be added on to term of loan at end?
Correct, it’s one of a set of measures we’ve put in place to try to help many different citizens across country to deal with this approaching crisis. It builds on the decision made by revenue commissioner to help small businesses with timing of tax payments. This is the latest part of our response to help small businesses and mortgage holders, we know there is great fear with job loss and incomes rapidly cut due to COVID-19 and this is a particular worry that we’re hoping to deal with for the next 3 months.
How soon can people apply and when will it come into effect?
Available through our banks immediately because of the crisis now happening, jobs being lost, retail situation. As they are dealing with this great and unexpected crisis Government and banks are coming together to help people with mortgage payment or loan payment directly
What about renters?
This framework is all about those who have loans. As this issue entered public domain over 48 hours an issue that was raised was buy to let mortgages and where thy stood – they are included in this framework, if you are a tenant and you lose your job due to COVID-19, you go to your landlord the landlord has a buy to let mortgage, they then access this flexibility and that flexibility in turn is passed onto the tenant
How can you ensure that actually happens?
Going to track this with every tool we can. Have to say it’s my expectation that the overwhelming majority of our citizens know that we are dealing with a crisis that is beyond our imagination of only a few weeks ago. Landlords know that and they can see the strain their tenants are under so I do expect that landlords will want to pass this on. But this is an extraordinary measure being implemented by all our banks and has to be passed on to all those in need and I and Government will look at all the ways we can track this and all the things we need to do in the future if this agreement is not passed on
This agreement was with 5 main retail banks but more than 100,000 mortgages owned by vulture funds etc. What can you do for those people?
Moving at great speed at the moment to try to ensure we have right policies in place. In meeting today and over the past 48 hours we have focussed on 5 banks as they have majority of loans in this country. but Banking Payments Federation of Ireland are engaged with non-bank lenders and across coming days we will play our part in that. I want to see where possible similar flexibility in place for loans with non-bank holders. I’m particularly aware those people could already be in vulnerable circumstances and I want at very least the spirit of an agreement like this if not the agreement itself to be in place for all.