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MINISTER FOR FINANCE Paschal Donohoe is meeting the five main banks today to discuss measures about how banks can ease pressure on people during the Covid-19 lockdown.
With 150,000 people out of work this week alone, it’s expected that that figure will increase by the end of the month, meaning a significant number of people will be under financial pressure.
Speaking on RTÉ’s Morning Ireland this morning, Social Protection Minister Regina Doherty said people’s mortgage payments would be one issue that would be discussed today at the meeting with the Banking & Payments Federation Ireland (BPFI).
When asked about the measures taken in the UK to give people a three-month break from paying their mortgage, Doherty said:
I think we will expect an announcement of what the banks are going to do not just for their personal customers but also for all of their business customers after that meeting today.
“I think they’re very aware of the response needed,” she said.
Fianna Fáil spokesperson Michael McGrath said that banks needed to opt for a freeze on mortgages for a certain time period, but that this should be rolled on, if needed.
On those paying rent, Doherty said that landlords shouldn’t be “scraping people for money they don’t have”, and that people need to pull together.
“I think you can imagine there are an awful lot of bases being touched at the moment, she said, adding that the State offered to pay for calls to GPs.
Earlier this week, BPFI began discussions with the Department of Finance on behalf of the five retail banks: AIB, Bank of Ireland, KBC, Permanent TSB and Ulster Bank.
The Department of Finance and banking representatives had discussed a State sponsored short-term unemployment refund scheme earlier in the week.
Earlier this month, before the Covid-19 crisis escalated, the BPFI group said that it was looking at how it could continue ‘core payment services’ such as cash distribution, paper clearing, card payments, electronic payments such as credit transfers and direct debits.
This was announced as the Central Bank announced that the firms it regulates need to have the appropriate contingency measures in case prolonged Covid-19 measures were taken.
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The banks will see this as a huge opportunity to milk more from their hard pressed customers. You might get a break from payments now but by God you will pay for that in the future.
@David Corrigan: such a positive outlook David. Must be exhausting being you.
@David Corrigan: The banks are done. Fiscal policy can help but, monetary policy has no ammunition left- The fact the ECB are already pumping 600 billion liquidty a month shows you how fragile they sre.
@A2 Poster: I am a very positive person but also being realistic. I hope everyone can get through this crisis from a financial perspective.
@David Corrigan: They have this far done more than many SME’s. wealthy public and and Hotels have just let all staff go immediately with no support and no attempt to keep them on the payroll – direct your ire elsewhere.
@Jack Inman: The banks will be fine – we need a functioning bank system.
The problem is sovereign debt.
@David Corrigan: you are like a ray of sunshine eh?
By any chance are all the rooms where you live painted black?
@Jack Inman: I agree Jack. I saw 21% wiped off a 401K account I have in the US. It dropped by that amount between last Monday and Thursday of the same week. We could be facing into a crash of epic proportions after all this is over. That would be a shame so close to what happened in 2008 and people only getting back on their feet in the last few years. Fierce times ahead for sure but it will all recover again.
@David Corrigan: Have you got a minute
Tell me everything you know
@Barry: You must really struggle when you have to move back into the real world Barry. The world will recover for sure but there will be a lot of pain before that happens. The banks have no history in taking a hit. Do you think that will change now?
@Dara O’Brien: What have the banks done Dara? The meetings didn’t happen yet.
I agree with you on your second point though. Companies show their true colours in times like this. Staff that have worked there for 10-15 years or more are just left hanging as soon as hard times arrive. I don’t agree with that kind of thing at all.
@Roger Dawson: It would take more than a minute Roger.
@David Corrigan: They have put in place suspensions for mortgage payments, interest free overdrafts, interest free credit facilities for business struggling.
The multiples have extended opening hours for elderly customers, An Post the same, the state have abolished waiting times for social payments, brought in enhanced measures for illness payments.
It’s actually ‘the big guys’ who have stepped up in this instance and not ‘the small guys’
@Dara O’Brien: There is nothing free in this world Dara. I agree with your points on opening hours and social welfare assistance though. That is very positive and welcome.
@Dara O’Brien: cash flow, is non existent when no purchases made, most businesses are since the recovery surviving from week to week, banks have done their bit to choke many a small business to debt
@Dara O’Brien: and corporate debt – a ticking time bomb which will create a bigger meltdown than the 2008 crisis once it explodes.
@William Bryan: are you telling me the publicans in temple bar can’t afford to keep staff on for a few weeks?
@David Corrigan: Try to be more positive David. All this negativity and constant giving out can’t be good for you. Please calm down and stop worrying people about future payments. We’re in the now
@David Corrigan: No you don’t realise you are a depressive. Try to get help please. It’s doing you no good.
@Barry: That’s not a nice comment. The man is disturbed. Please refrain from making him feel worse.
@David Glynn: You managed two comments without using the two letters combined i.e. SF. Well done you!
@David Corrigan: David. Its a team effort. I have called for all party leaders to be brought into the government until this is over.
You must move on or it will damage your heath and wellbeing.
All this negativity must be paying havoc with your psychological. outlook.
Pl calm down and post less.
@David Corrigan: must be back on the pills, thank føøøk
@David Glynn: You need to start acting your age David. Your approach does not work with me and from what I have seen on here, it is not working with anyone else either. I don’t like being stern with you as I don’t want you to feel like you are being bullied. That is something I am not comfortable with.
You are right. It is a team effort and everyone is doing their part for the country. Just focus on yourself and your family for now.
@David Corrigan: There you go again, sniping and jibing. It’s not good David. You are not being a team player by being nasty to me. All need to wear the green shirt now.
I am trying to be helpful and your response is confrontational.
I fear you will damage your health and wellbeing by continuing to be in denial about your anger and aggressiveness. There’s no shame in getting counselling for anger management.
I will pray for you and hope you see the light and move on to a better place.
@David Glynn: As usual you are completely and totally way off the mark here but like I said, I will be kind and just humour you.
@David Corrigan: Its not the Banks Paschal should be talking too its the ECB.
Minister Donohoe it is important that you use your powers to prevent the Banks from increasing rates and adding hypothetical Surcharges on customers where referrals are place on mortgages.
On previous form the Banks will use this opportunity to take more from customers
We the people of Ireland helped out the Banks during the recession – Banks and all lending institutions need to apply a blanket moratorium for ALL for a period of 3mths – tag it onto the end of the existing loan terms. No paperwork, no applications – give to all
@Elaine Nally: Spot on Elaine.
It needs to be more than just the main 5 banks.
Banks never lose… Paschal knows and deferral is just that. Interst will probably cover banks wait..
@Willy Mc Entire: didn’t aib lose money this year? Do you mean they will take preventative measures against losses? If so surely that can be applied to any business? Stop imagining big bad conspiracy theories. There could be a lot of good come out of this meeting. Let’s look on the bright side for once, people need that at the moment. Spread some positivity!
@A2 Poster: You have no clue do you, AIB and B of Iteland made well over a billion and a half profit….christ people like you are lost.
He would want to pull aside revenue also
I hope he checks out who owners the banks before goes to meet them not so much as asking more like telling them
Listening to FG Propaganda spokesperson, I quote, I hope the banks will be kind, as we were kind to the banks, bit like asking Albert Pierpoint to be kind when he did his job, the banks answer to shareholders end off, our political classes are to much in personal debt to the banks to rock any boat, 65 let go from my partners work place, maybe never to return.
@William Bryan: When you start your point with “Listening to FG Propaganda spokesperson” you lost your argument – the word ‘propaganda’ means your view was completely skewed. I’m not a FG supporter, not any means, but I do think they’re doing a very good job overall in coping with the current crises and the many, many of complexity if brings. If you have a better solution than the ones they’re proposing, perhaps suggest them?
@ImYourNumber1Fan: You are right but we all need to stop the political game playing now. Concentrate on being positive and helpful.
@David Glynn: Does that mean no more anti-SF rants from your good self then?
@ImYourNumber1Fan: FFG have destroyed our health system and you will soon see what that means if this gets out of hand. Pray you don’t need to use an A&E in the coming months.
@Shakka1244: I am doing my level best to be constructive. While opposed to SF policies I am calling for all the leaders to be brought into the Government.
I will no longer engage with single view polemicists like yourself.
You are contributing nothing as you continue to back bite and sneer. This is not a game
Think again.
@ImYourNumber1Fan: Propaganda is exactly what he was spewing full stop
The way I see it is the banks aren’t run any position to be calling the shots. They along with the rest of us are just going to have to suck it up. It seems to me that having enough money to buy food and other necessities is all that matters right now. Paying off mortgages, car loans and any other long term financial commitment is stuff we start dealing with when some sense of normality returns. It’s not like they’ll be sending in the Bailiffs in this climate!
Donoghue needs to grow a pair when dealing with these people.
How much of a baleout will the banks need to help them through this difficult time……
@David Van-Standen: I know, if the banks give us a break now they will want that back in spades.
The same old reaction: Look after the banks under the guise of “Looking after the public!
The EU and the current non elected government will do the exact same as they did in 2008 bail out the banks and their corporate shareholders and the Irish public will be presented the bill: After selling shares of AIB to mostly corporate holders at approx 4.20 euros in 2017 today these shareholders are nursing a massive loss as the shares are now worth approx 1.21 euros: The government will stitch up the Irish taxpayers again: This is a golden opportunity to bail out this greedy lot!
Solution! Pay every household in the country immediately a flat payment of 1200 euros!
Yes, everybody! The EU should be doing this across the EU: Showing solidarity with fellow member states:
All mortgage payments should be “quarantined” as long as the situation lasts and without any costs of any kind to the public.
The payments of the national debt (remember the debt we were forced to take on from the private banks ) should be stopped immediately as long as this situation continues and we should renegotiate all of the national debt afterwards!
All Business should be given a break of 6 months from water charges, rates, and VAT.
A total refocusing of our nation’s wealth should take place and the real concerns of the people of Ireland should be given top priority: Ie a decent health service for all and a roof over everybody’s head and a decent education coupled with decent state-funded childminding services :
How to fund this:
The government is sitting on 18 billion euros they are desperately trying to give back to the worlds richest corporation (Apple) These funds are back taxes Apple was forced to pay back the Irish taxpayers by the EU: We as a nation are also paying interest on 260 billion euro debt we were forced to take on in 2008 bailing out the European banking system mainly Deutsche bank and some other french banks The total over the last 10 years is approximal 72billion euros and that is just interest on debt that is not ours! ( Remember Enda Kenny saying this before he got into government but when he got in he completely changed his position to that of the EU the same thing happened with that Labour guy remember “Labours way (Left) or the EU way(right) What happened when he got in it was all the EU ‘s way!
the interest payment on the national debt is approx 8.5 billion every year with hidden fees we should withhold these payments and use this money to fund our own emergency needs for the duration (approx 1 year ) I’m guessing!
FG ( Leo is talking about “borrowing billions” at a cost to the people of Ireland! Well, all politicians should be forced to take a 50% pay cut in solidarity with the hundreds of thousands of people losing their jobs in the next 20 days or so!
for the record, I am not a member of any political party nor am I a politician:
implement this action plan is just the start we cannot afford another bank-led bailout in any shape or form;
@Thomás O Cléirigh:
Of course it is a given that rents should be postponed if you are unable to pay or out of a job and a general reset can be arranged after we get through this : “WE WILL GET THROUGH THIS BUMP ON THE ROCKY ROAD TO NATIONHOOD ”
GOD BLESS IRELAND !
So the options we have are Death or Debt! Great!
What about those with mortgages with providers who are not within the five major banks, or with vulture funds. ????
No meeting needed .tell them this is what’s happening .
Cue Ireland fiscal response either today or by week end. Just oicking apart UK and EU responses to see what they can use themselves
@Jack Inman: and why not?
social services are set to continue and all necessary public amenities continue to be available as far as I am aware!
They should waive the interest on payments for the next 6 months. Pay capital only.
So if we go into full lockdown, how will the issue of waste disposal be dealt with ?
I take my rubbish to a local waste facility each week. Don’t have the benefit of a collection facility from my door. Serious amounts of waste a public health hazard of a different type. Any clues what might happen re waste in the event we cannot go to open air dump facility ?
@Laura Crowe: No such thing as a full lock down. People will always be allowed out for essential purposes
@Justin Gillespie: Yes, they said to do shopping and get prescriptions…but nothing about removing household waste. Would be a comfort to know if this is true.
Any relief from the banks could change your contract ,watch out .
have your say