Low repayments on mortgages across the property industry have shown the adverse effect of the pandemic on businesses. The fall in economic activity has translated into a fall in consumer disposable income and financial incapacity to honor financial obligations. To cushion mortgagors against this loss of income, Irish banks have granted 45,000 loan repayment breaks to struggling individuals.
45, 000 individuals to benefit from mortgage breaks
According to the Banking Payments Federation Ireland (BFI), the 45,000 individuals who’ll benefit from the financial scheme represents 5% of the mortgage market. Also, all five banks are now involved in the plan and its implementation.
14,000 SMEs applied for loan repayments breaks and capital requirements
Apart from the breaks given to individuals, the banks also received a huge volume of applications from SMEs requesting loan repayment breaks and working capital. As a result, the banks have offered close to 14,000 breaks to SMEs. They are also busy processing working capital applications, which represents 35% of financial support.
All five Irish banks are involved in the financial plan
The loan repayments break granted to both individuals and SMEs has been necessitated by the unfavorable impact of the pandemic. All five Irish banks have initiated and implemented the mortgage breaks to borrowers so that they can cope with repayments. Those banks have also processed working capital requests from small businesses. Click here to find out more.