Government measures in key jurisdictions 3rd edition final - Flipbook - Page 62
Ireland
(the “
”) – 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 microenterprises – (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%.
– 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.
(“
”) – the PSRF is a €2 billion
fund administered by the Irish Strategic Investment Fund to support medium and large
enterprises in Ireland "materially impacted" 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 €50 million. Aside from material impact, 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.
•
(the “
”) – this is a €250 million 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 or a minimum payment of €2,000, whichever is higher and there will be
a cap per business of €10,000. The Fund will be available to businesses with a turnover of
less than €5 million and employing 50 people or less, which were closed or impacted by at
least a 25% reduction in turnover up to 30th June, 2020. The Fund is a contribution towards
the cost of reopening or keeping a business operational following the pandemic.
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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•
– 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 ("CBI"), 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. On 8th June, 2020, the CBI sent a
‘Dear CEO’ letter to the CEOs of regulated firms that previously granted payment breaks of up to
six months to borrowers affected by the pandemic. The ‘Dear CEO’ letter outlines the CBI’s
expectations of regulated firms when dealing with borrowers in respect of Covid-19 payment
breaks. It also includes the information that should be provided to borrowers in communications
regarding Covid-19 payment breaks.
•
– 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.
Government measures in key jurisdictions