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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case IE-2020-12/823 – measures in Ireland

Banks introduce measures to cushion effects of COVID-19

Country Ireland , applies nationwide
Time period Temporary, started on 18 March 2020
Type Company practices
Category Supporting businesses to stay afloat
– Access to finance
Author Roisin Farelly (IRN Publishing) and Eurofound
Case created 06 May 2020 (updated 11 May 2020)

Background information

A well functioning banking system is key when it comes to bringing the economy back on track in the context of the COVID-19 crisis. In Ireland, the Minister for Finance Paschal Donohoe therefore agreed with large banks in the country on a range of measures to be introduced. These include a payment break of up to 3 months, deferment of court proceedings and the provision of working capital with the aim that critical functions of the economy continue to operate.

Content of measure

The measures being introduced by the five main banks (AIB, Bank of Ireland, KBC, Permanent tsb and Ulster Bank) are as follows:

  1. Implement a payment break: Businesses and personal customers affected by COVID-19 will receive a payment break of up to 3 months. After the 3 month period, periodic checks will be in place to see if the breaks need to be extended.

  2. Simplified application process: Applications to bank products such as loans are to be simplified with the aim to reduce direct human contact whenever possible.

  3. No adverse affects on customer's credit record: Applications for a COVID-19 payment break are not supposed to negatively affect the credit rating of an individual or business.

  4. Banks will defer court proceedings for three months.

Use of measure

Currently no information available.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Applies to all citizens

Actors and funding

Actors Funding
National government
Company / Companies
Companies

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain No involvement as case not in social partner domain
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Company level

Involvement

N/A

Views and reactions

Social partners are not involved in this measure.

Sources

  • 18 March 2020: Banks announce measures for customers and businesses impacted by Covid-19 (www.rte.ie)

Citation

Eurofound (2020), Banks introduce measures to cushion effects of COVID-19, case IE-2020-12/823 (measures in Ireland), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.