Details came through last night on the Employer Refund Scheme announced by Minister Regina Doherty – the Government are calling on employers, where possible, to pay their temporarily laid-off workers the €203 /week COVID-19 Unemployment Payment and reclaim from state through the Revenue Commissioners.
Click here for the press release
Click here for Revenue Commissioners information on how to implement the scheme
Intreo office Limerick
Our Regional Manager for Department of Social Protection called yesterday to say thank you to the employers who are, as requested, collecting and sending in their employee’s COVID-19 UP applications in batches. The Dominic Street office in Limerick is experiencing significant increases in demand for their services and so your help is much appreciated by the team there who are working hard to process applications as quickly as possible.
If you are facing the difficult task of laying-off staff temporarily, click here to read our post earlier this week on what you can do to assist your employees and how to submit their forms as efficiently as possible.
Banks update for affected customers
News came also, that our five main banks are meeting with Minister Donohoe, the Central Bank and the Revenue Commissioners to devise coordinated measures that will assist customers who are impacted by COVID-19. (see press release below from Dept of Finance)
An update is expected very soon on Local Authority Rates.
_______________________________________________
From: “Pressoffice” <pressoffice@finance.gov.ie>
Sent: Wednesday, 18 March, 2020 17:02:22
Subject: Minister Donohoe outlines further measures to support Individuals and businesses impacted by COVID-19</pressoffice@finance.gov.ie>
Wednesday 18th March 2020
Minister Donohoe outlines further measures to support Individuals and businesses impacted by COVID-19
The Minister for Finance and Public Expenditure & Reform, Paschal Donohoe T.D., today (Wednesday) welcomed the ongoing work of the Central Bank of Ireland, Banking and Payments Federation Ireland (BPFI), and the Revenue Commissioners to support customers in difficulties due to COVID-19.
“Today, I had a constructive meeting with the five CEOs of our retail banks and with Banking and Payments Federation Ireland (BPFI). I note that a meeting will also be held with the Central Bank tomorrow. I welcome the ongoing work that is taking place to assist customers who are impacted by COVID-19.
The proposed actions by the banks will build on the Government response, and the ECB’s monetary and regulatory policy measures to deliver real support to individuals, SMEs and companies in these difficult times. These actions are the translation of European and national policies into individual supports that best assist the needs of our bank customers in the period ahead.”
1. BPFI Support for bank borrowers
The banking sector’s coordinated approach to supporting customers whose income has been impacted by COVID-19 is to be welcomed. The range of supports proposed by the BPFI, and to be discussed with the Central Bank, are customer focused so as to cater for the different impacts of COVID-19 on each individual customer. These proposals include:
Flexible arrangements, including payment break for Mortgages and other loans – Customers affected by COVID-19 must contact their bank to discuss the flexibility available to them, including the possibility of a payment break of up to 3 months.
Support for buy to let bank customers with tenants affected by COVID 19 – Customers with rental property in which the tenants are adversely impacted by COVID 19 will also be provided with flexibility including with an opportunity to seek a payment break of up to 3 months, which will allow them to exercise due levels of forbearance to their tenants.
Extensive supports for SME customers – Banks are working to ensure a wide range of credit, cash flow and supply chain supports are offered to businesses who are trying to manage the pressures arising from COVID-19. A deferral of up to 3-months on loan repayments will be of assistance to many businesses. In addition, the banks are adopting a customer focussed approach to these businesses with a wide variety of tailored supports including extensions of credit lines, risk guarantees, and trade finance. These supports complement the range of Government supports available through the Strategic Banking Corporation of Ireland.
Customers facing difficulties due to COVID 19 are urged to contact their bank as soon as possible to make alternative arrangements that will assist them to come through this difficult period. Banks will work to ensure that these supports are made available to borrowers in a straightforward manner and aligned to the processes rolled out by the Department of Employment Affairs and Social Protection.
2. Central Bank Prudential Policies
The Minister welcomes the Central Bank’s decision to reduce the Countercyclical Capital Buffer, from 1% to 0%. This decision will free up bank capital that can be used to provide credit, and to restructure and extend the loans of bank customers, both individuals and SMEs. The release of this regulatory buffer by the Central Bank in this time of need shows the importance of the Central Bank’s introduction of the buffer two years ago in stronger economic times.
The impact of the reduction of this buffer to 0% will free up in excess of €1 billion of bank capital. This capital amount has the potential to support approximately €13 billion of restructured lending to bank customers that need assistance. Combined with the relaxation of Pillar 2 guidance and the Capital Conservation Buffer by the European Central Bank, the reduction in this buffer will ensure that banks have significant resources at their disposal to support borrowers.
The Minister also welcomes the Central Bank’s ongoing work with European colleagues to ensure that bank customers, whether personal or business customers, impacted by COVID-19 are extended forbearance without their loans being classified as defaulting.
The Minister has also decided to defer the introduction of the Systemic Risk Buffer while all of the key players in the banking sector are working together to support customers.
The actions taken by the Central Bank and Single Supervisory Mechanism to allow banks to focus on the task of supporting their customers is welcome as it strikes the right balance between allowing banks to meet their customers’ immediate needs, while ensuring there is proportionate regulatory oversight.
3. BPFI actions to ensure operational continuity
The Minister acknowledges the extensive work that has been ongoing across the BPFI and its members to ensure the continuity of banking services to the public. The proactive approach of the BPFI and its members in working together should minimise possible disruption to payment services.
4. Changes to assist Public Health Policy
In order to support public health policy, the Minister is requesting that industry increase the limit on contactless payments to €50. This change covers most transactions given the average value of contactless transactions is €12.23 and the average value of debit card transactions is €41.52.
5. Deferral to stamp duty
The Minister has decided to defer the collection of stamp duty on credit cards to July, which is normally levied in April, for which he will legislate for in due course.
6. Non Bank lending
The Minister welcomes the fact that initial discussions with Credit Service Firms and with those non– bank lenders who provide mortgages have taken place with the BPFI. Both the Credit Service Firms and non-bank lenders have issues which need to be addressed with the Central Bank of Ireland, but both are committed to working with the Government and industry to provide the flexibility that people need at this time.
The Minister concluded by stating:
“We are all acutely aware of the impact of this public health crisis on our fellow citizens, both in terms of serious illness but also in terms of income loss.
“The proposed actions provide real support to those most impacted by COVID-19. It is incumbent on those citizens who continue to receive their full income to do their part by paying their bills, taxes, and loans on time, so as the maximum amounts of supports are available to our fellow citizens who are most in need.
“We must work together and support each other.”
Minister for Housing, Planning and Local Government, Eoghan Murphy TD, in support of the measures announced today added that “Today’s announcement by the banking sector represents a first step in protecting both tenants and landlords in the current crisis. These actions remove pressures on landlords who have shown a willingness to exercise forbearance in relation to tenants who are experiencing difficulty with rents due to the loss of income resulting from contracting the covid19 virus, being in self-isolation as a result of the virus or having lost all or significant employment. I have spent the last number of days engaging with both landlords and tenants organisations as well as charities and NGO’s and I expect to be in a position to announce further measure to compliment today’s announcement shortly.”
Ends
Contact: Press Office at Department of Finance
Share On.....