Gabhaim buíochas leis an gCeann Comhairle agus leis an Aire. Sa tseachtain atá amach romhainn, tiocfaidh deireadh leis an sos a dtugtar do shealbhóirí morgáistí agus d'aisíocóirí mar gheall ar Covid-19. Beidh tionchar aige seo ar na mílte daoine agus teaghlach ar fud na tíre. Beidh na daoine seo i riaráistí agus i dtrioblóid le haisíocaíochtaí muna gcuidíonn an Rialtas leo. Impím ar an Aire, ar an Rialtas, ar na bainc agus ar na hiasachtóirí eile céimeanna a ghlacadh agus cinneadh a dhéanamh go sínfear amach an sos seo. Níl fágtha anois ach sé lá leis sin a dhéanamh.

In March, the Government, the five main retail banks and their representative body, Banking and Payments Federation Ireland, announced measures to deal with the impact of Covid-19 on borrowers. These measures also involved other non-bank lenders. Among the measures introduced was a three-month payment break for mortgage customers, which was later extended to six months. These payment breaks were introduced in response to the introduction of guidelines by the European Banking Authority. These guidelines stated that, where payment breaks were implemented appropriately, loans would not go into default.

According to the Central Bank, 74,000 payment breaks have been granted to mortgage holders since the beginning of the pandemic. Nearly 40,000 of these have availed of an additional extension to their break. These payment breaks are, however, due to come to an end and no provision has been made for those whose breaks are to come to an end or for what will happen afterwards. With unemployment rates remaining sky high and cuts made to the pandemic unemployment payment by the Government taking effect from yesterday, many borrowers are facing imminent default.

The situation is no less grave for our small and medium enterprises. The Central Bank estimates that a quarter of SMEs have applied for Covid-19 payment breaks since May. With further restrictions now possible, the ability of many of those businesses to return to regular repayments is in doubt.

While the option of taking payment breaks of three to six months has been offered by Irish lenders, measures across Europe have differed. In Germany, breaks of nine months were offered while breaks of 12 months were offered to borrowers in Spain, Italy and Portugal. Covid-19 and the public health measures necessary to contain its spread will be with us and with the economy for some time to come. Many of those who have become unemployed will remain so for some time and many of those who lost income will not see it recover for some time. Many businesses whose trading has been disrupted will not be in a position to return to normal activity for some time. Unless these payment breaks are extended in the context of Covid-19, many of these borrowers will fall into default. That is the sad reality of the situation.

This is very concerning. The European Banking Authority's deadline for the application of its guidelines is 30 September, which is next Wednesday, six days away. Our banks and non-bank lenders must extend payment breaks before then or many of these borrowers will fall into default. We are quickly running out of time. I have been raising this issue with the Minister for Finance for some time but he has refused to act. I have also raised it with the Central Bank and have met its representatives in that regard. I have contacted all five main retail banks in the State. This is what the Minister for Finance should be doing. Urgent action is needed.

We read in the Irish Daily Mail that the Minister for Finance is to meet the banks on Monday. That is two days before the deadline - 48 hours. It is simply too late. Will the Minister ensure that the Government, with Banking and Payments Federation Ireland, the retail banks and the non-bank lenders, urgently announces an extension to the payment breaks granted in the context of Covid-19? Will he ensure that interest will not be accrued during such payment breaks, a measure permitted under the guidelines?

I share Deputy Doherty's concern for those in difficulty because of Covid-19, not only with regard to mortgage repayments, but a whole range of financial issues. It is a critical issue. If one is facing a particular debt problem, it sharpens and brings into focus a real difficulty. I roll in with the Deputy in saying that those who are in such a position, and who will have to act quickly in advance of 30 September, should, if they intend to make an application, do so in this short interim period.

That will not be the end of the issue and it does not mean that it will not be possible after that period for banks to continue offering loan payment breaks on a case-by-case basis. That is not ruled out by the European regulations. This comes from the European regulatory system and it does not preclude doing so. Even after 30 September, it is our experience of managing such issues that it is always best for customers to approach the banks and engage with them so that the issue is not put off to become a greater difficulty later. It is better to work to resolve these issues than to ignore them.

If customers experience difficulties in how banks deal with them and how this is managed, they may work with the Central Bank's consumer protection unit and make use of the code of conduct on mortgage arrears. Banks cannot act in a way that is completely contrary to good public policy and the public interest. They have to consider the wider issue and deal with customers fairly. Failing that, the State offers other supports. It is never ideal to be in such circumstances but systems are in place through the Money Advice & Budgeting Service, MABS, and other offices to provide supports and advice.

The Minister for Finance, Deputy Donohoe, has central responsibility for this issue and is, as was reported in the newspapers today, due to meet the banks. I am sure he will remind them that, as I have said, this is not a time to clamp down on customers but a particularly severe period of financial difficulties which we must get through.

In everything we are doing it is recognised that exceptional tolerance and spending are required of the Government in a whole variety of ways to support customers. We have to abide by the regulations as set out by the European Banking Authority. The members of the Banking and Payments Federation Ireland will have to ensure the new arrangements do not lead to a further shock to the economy, which does not need further shocks. I am confident that the Minister will express that clearly to the banks and that they will work with him and the Central Bank to ensure that we avoid this becoming a further difficulty for the economy and a particular section of the country.

Individual banks can always extend a payment break. They always could and always will be able to do that. However, what it means for customers is that they will be in default and will have a negative credit rating. What it means for the banks is that they will have to hold additional capital. The European Banking Authority has recognised the severity of the Covid-19 pandemic across Europe. The authority has said that if a bank announces a payment break before the end of this month, which is in six days' time, its customers will not be in default and the bank does not hold additional capital.

The Minister talks about how the banks can do this and that and about the consumer protection code. We are in a unique position. Tens of thousands of homeowners will fall into default in the coming days. Tens of thousands of businesses have staff who cannot go back to work and who have loans in respect of which the banks will start asking for full payment. What is the position of the Government? The State is the majority shareholder in Allied Irish Banks and Permanent TSB and a significant shareholder in Bank of Ireland. Does the Minister have a position on this? Does the Government have a position on it? Only six days are left to announce a payment break. Otherwise every borrower will be on his or her own.

The problem is that there is consistency in this. This Government is failing to tackle the meat plants, insurance industry and banks. Who is always left with it? It is the ordinary individuals. There is a system in place that we can avail of. The Government should do the right thing and not leave it until the last minute. I cannot understand why this has come down to the wire. We need to protect these borrowers, homeowners, businesses and entrepreneurs.

There are a range of different circumstances depending on the individual circumstances. Some people are now going back to work and payments are starting again. For others who are not going back to work and who are in difficulty, the Government position is clear. Lenders must work with their borrowers and put in place new payment arrangements that are suitable for borrowers who are still experiencing difficulty at the end of a Covid-19 payment break. Lenders are obliged to engage and work with co-operating borrowers to identify an appropriate and sustainable solution having regard to the particular circumstances of a case. It is done on a case-by-case basis but there is an obligation, from the Government's perspective, on all banks to work with customers who are willing to engage to avoid default or other difficult circumstances. For some borrowers, temporary additional supports may be the answer. In this regard, we have to be clear. The European Banking Authority has made clear that banks can continue to support their customers with an extended payment break after 30 September. The authority is making a Europe-wide regulatory change but that does not preclude banks from applying the same break measures that allow customers to get through this period on a specific case-by-case basis. However, it has to be on a case-by-case basis.