AIB to extend payment holiday beyond 3 months

[Brendan Burgess]

Extension to payment breaks 'inevitable', says AIB chief executive Colin Hunt

AIB chief executive Colin Hunt has said that it is “inevitable” that the bank will be forced to extend payment breaks to customers beyond the three-month period advertisedas the Covid-19 crisis deepens.Hunt revealed that the bank has agreed to a total of 25,000 three-month payment breaks to customer

www.thetimes.co.uk

AIB chief executive Colin Hunt has said that it is “almost inevitable” that the bank will extend payment breaks to customers beyond the current three-month period as the Covid-19 crisis deepens.

Hunt revealed that the bank has agreed to a total of 25,000 three-month payment breaks to customers across its mortgage, consumer and SME loan books. Mortgages account for most of the moratoriums, Hunt said, with some 15,000 payment breaks agreed. However, the bank has also agreed moratoriums on a total of 7,500 SME loans.

And every pandemic has a silver lining...

Among the targets, the bank plans to shed 1,500 staff. Hunt said that, in response to the Covid-19 outbreak, the bank has withdrawn a voluntary severance programme that was expected to kick-start the staff rationalisation.

 

[AlbacoreA]

How can the banks afford to do all of the above?

 

[Brendan Burgess]

It doesn't cost them much.

They will continue to earn interest.

It's not an interest holiday, just a payment holiday.

Brendan

 

[AlbacoreA]

Yes but from the banks pov it's a big hole for the year no?