TAOISEACH LEO VARADKAR met with the heads of the five major Irish banks today to discuss the ongoing Covid-19 crisis. 

This evening, the government said that the banks have agreed that anyone in receipt of a mortgage break can now have the loan term extended – meaning people won’t face a rise in monthly repayments. 

The meeting, which took place between Varadkar and the chief executives of the five main banks – AIB, Bank of Ireland, Ulster Bank, Permanent TSB and KBC – saw the taoiseach welcome the decision of banks to extend payment breaks for mortgage holders to six months.

Businesses and mortgage customers, during the crisis, will have the option of having the term of their loan extended, but it won’t affect people’s credit rating. 

Varadkar, who met the banks alongside finance minister Paschal Donohoe and Minister for Business, Enterprise and Innovation, Heather Humphries, praised the banks for staying open during recent weeks. 

A statement issued this evening said that “the government and the banks jointly recognised the challenge facing many businesses as the economy reopens”.

“The government welcomes the commitment by the banks to continue to play their part by working positively with their customers, in as supportive a manner as possible, to ensure that the recovery can take place as quickly as possible.”

Earlier today the Chief Executive of Bank of Ireland Francesca McDonagh told RTÉ that she couldn’t see the six-month break being extended any further. 

The Banking & Payments Federation chief executive Brian Hayes called the meeting “constructive”. 

“Our collective efforts are focused on ensuring Irish SMEs and their employees have the support they require and that they are in a position to trade and rebuild their businesses as Irish and global economies re-open in the months ahead,” Hayes said.