Paschal Donohoe has also asked them to increase the contactless limit to €50.
A payment break of up to three months is among measures being introduced by banks to support businesses and personal customers affected by Covid-19.
Minister for Finance and Public Expenditure & Reform, Paschal Donohoe said he 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.
Donohoe met with the five main banks, AIB, Bank of Ireland, KBC, Permanent TSB, Ulster Bank and the BPFI to discuss the impact of Covid-19.
“I note that a meeting will also be held with the Central Bank tomorrow,” Donohoe said. “I welcome the ongoing work that is taking place to assist customers who are impacted by Covid-19.”
Donohoe advised customers affected by Covid-19 to contact their bank to discuss the flexibility available to them, including the possibility of a payment break of up to three months.
Banks are currently putting these systems in place but customers are asked for patience while they’re implemented.
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 three months.
Donohoe also said he is requesting the industry increase the limit on contactless payments to €50. He argued 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.
The following measures were agreed between all five banks today.
- Implement a payment break up to three months for business and personal customers affected by Covid-19, to be followed by ongoing reviews depending on the scale and extent of the situation. Customers wishing to avail of a payment break should contact their respective bank.
- The banks agree there is a need for a simplified application process to make it as easy as possible for businesses and personal customers impacted by Covid-19 to receive support from their banks. We are working with all member banks to achieve this.
- The banks want to ensure that any Covid-19 application for a payment break and further reviews will not adversely impact the customer’s credit record, and the banks reporting of these facilities. Banks want to avoid this and are meeting with the Central Bank of Ireland to urgently achieve a solution in this regard.
- Banks will also defer court proceedings for three months.
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