Coronavirus - Government measures in key jurisdictions - Flipbook - Page 46
Ireland
In addition to the above, a range of measures have also been agreed between the Irish retail
banks and the Irish Government as follows:
•
A 3-month payment moratorium: banks, credit unions, retail credit firms and credit
servicing firms will grant payment breaks on mortgages, personal loans and business
loans for those businesses and individuals experiencing financial difficulties caused
by COVID-19. As at 16 April 2020, the Banking & Payments Federation Ireland is
involved in ongoing discussions with the Central Bank of Ireland to extend the
payment moratorium to 6 months, which will coincide with the majority of the EU and
the EBA guidelines,
•
Support for buy-to-let customers with affected tenants: flexible repayment
arrangements will be made available to buy-to-let customers with tenants affected by
COVID-19. This includes a mortgage payment moratorium of up to three months, which
will allow, and hopefully encourage, landlords to pass that break on to their tenants. As
outlined above, this may be extended to six months,
•
A Deferral of court proceedings: legal proceedings including repossessions will be
deferred for three months. At the time of writing, it is unclear whether this applies to
the issuing of new proceedings and/or refraining from progressing or staying existing
proceedings,
•
Extensive supports for SME customers: banks are working to ensure that a wide range
of measures are made available to businesses who are trying to manage the financial
pressures arising from COVID-19. The measures include the provision of cash flow and
credit facilities as well as supply chain supports. The deferral of loan repayments for up
to three months will also be available to SMEs, and
•
A customer focused approach: banks have committed to providing suitable tailored
supports for business including the extension of credit lines, risk guarantees and trade
finance.
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These supports are intended to complement the range of government supports, including
the Irish Liquidity Scheme detailed above. For more information on the above measures,
please see our recent article, available here.
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Employment
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
•
The Irish Government has introduced a Temporary Wage Subsidy Scheme. Under
the scheme, employers may continue to pay their employees via their usual payroll
system, up to a certain limit, for a period of 12 weeks, from 26 March 2020. Those
payments will be reimbursed to the employer by the State within two working days.
•
The Irish Government has introduced a COVID-19 Pandemic Unemployment
Payment of €350 per week which is available to employees who have either lost
their job entirely or who have been temporarily laid off as a result of the pandemic.
The payment was originally made available at a rate of €205 per week from 13 March
2020, but was increased to €350 on 24 March 2020. The payment is also available
to self-employed individuals whose trading income has ceased due to COVID-19.
•
COVID-19 Emergency Employment Supports
Government measures in key jurisdictions
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