Government ministers say banks committed to 'success' of €2bn Covid-19 credit guarantee scheme
Tánaiste Leo Varadkar, Minister for Finance Paschal Donohue and Minister for Public Expenditure and Reform Michael McGrath met the Chief Executive Officers (CEO) of Anglo Irish Bank, Ulster Bank and Bank of Ireland today.
In a statement this evening the Tánaiste and both government ministers said the banks assured them work is ongoing to ensure a smooth return to regular repayments for customers on payment breaks for mortgages and other loans due to Covid-19.
According to the statement, all three banks committed to the government's €2bn Covid-19 Credit Guarantee Scheme for businesses impacted by the coronavirus pandemic.
Previously Mr Varadkar defended the government's decision to take on 80% of the risk under the Covid-19 Credit Guarantee Scheme as the government cannot force the banks to lend to businesses.
However Mr Varadkar said it was important for the banks to have 20% of the risk otherwise there would be no disincentive for reckless lending.
Speaking after the meeting Minister for Finance, Pascal Donohue emphasised the importance of the banks' role in Ireland's post-Covid recovery.
Mr Donohue said: "The retail banks play an important role in the efficient functioning of our economy in normal times and this role is even more critical in these difficult times as we seek to reopen the economy and return to sustainable levels of growth as quickly as possible.
"I welcome the undertaking from the CEOs of the three largest retail banks to support all their customers, including assisting customers with difficulties returning to full repayment at the end of the payment break.”
The €2bn Covid-19 Credit Guarantee Scheme will be the largest credit guarantee scheme for businesses in the history of the State and will provide low-cost loans to businesses impacted by the virus.
