Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 50
Ireland
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Microfinance Ireland COVID-19 Business Loan (the “MFI Business Loan”) – the MFI
Business Loan is a government initiative to support small businesses through the
current period of uncertainty and to protect job creation or sustainment in Ireland.
The maximum MFI Business Loan available from Microfinance Ireland has been
increased from €25,000 to €50,000 as an immediate measure to specifically deal
with exceptional circumstances that micro-enterprises – (sole traders and firms with
up to 9 employees) – are facing in order to alleviate the financial pressures arising
from COVID-19. In addition, the terms of the MFI Business Loan include a six-month
interest free period and a repayment moratorium of up to six months, with the loan
then repayable over the remaining 30 months of the 36-month loan period at an
interest rate of between 4.5% and 5.5%.
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Enterprise Ireland Supports – the Department of Business, Enterprise and Innovation
has implemented a €200m package for Enterprise Supports including a Rescue and
Restructuring Scheme available through Enterprise Ireland for vulnerable but viable
firms that need to restructure or transform their business. In addition, Enterprise
Ireland has created a new €180m Sustaining Enterprise Fund in order to provide
manufacturing and internationally traded services companies with capital to help
stabilise and rebuild their businesses.
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Pandemic Stabilisation and Recovery Fund (“PSRF”) – the PSRF is a €2 billion fund
administered by ISIF (the Irish Strategic Investment Fund) to support medium and
large enterprises in Ireland affected by COVID-19. The PSRF will focus on investment
in large and medium enterprises employing more than 250 employees or with an
annual turnover in excess of €50m. Enterprises must be able to demonstrate that
their business was commercially viable prior to the pandemic, and that they can
return to viability and contribute to the Irish economy.
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Restart Fund (the “Fund”) – this is a €250m fund targeted at small and micro
enterprises that have been impacted by COVID-19. The purpose of the Fund is
to assist businesses in reconnecting with the market, their employees and their
customers. The Fund will operate through a system of rebates/waivers based on
commercial rates payments from 2019. Companies will receive a total amount
equivalent to no more than their 2019 rates bill and there will be a cap per business of
€10,000. Details of the scheme are to be finalised in the coming weeks.
In addition to the above, a range of measures have also been agreed between the Irish
retail banks and the Irish Government as follows.
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A 6-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. Following ongoing discussions with the Central Bank of Ireland, the Banking
& Payments Federation Ireland have extended the original 3-month payment moratorium
to six months, which coincides with the majority of the EU and the EBA guidelines.
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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 six months, which
will allow, and hopefully encourage, landlords to pass that break on to their tenants.
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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.
Government measures in key jurisdictions
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