Ireland

More than 45,000 mortgage payments breaks have been granted by banks or are close to completion, new figures show, The Irish Times reported. This is equivalent to 5 per cent of all mortgages in the Republic. Data from Banking Payments Federation Ireland shows close to 14,000 payment breaks for SMEs were granted or are in the process of being agreed over the past three weeks. In addition, banks are “well advanced” in processing 3,200 requests for working capital facilities, chief executive Brian Hayes. He said it has largely been SMEs seeking payment breaks to date.

A total of €34 billion has been wiped off the value of Iseq 20 companies over the past three months as the Covid-19 pandemic spooked investors in global equities, The Irish Times reported. AIB and Bank of Ireland are the biggest losers, shedding 69 per cent and 65 per cent of their market values respectively. As a result, AIB’s market value has fallen by almost €6 billion while Bank of Ireland’s has dropped by €3.4 billion. Combined, the State’s two largest domestic retail banks are worth just €9.3 billion.

The Central Bank has warned that the coronavirus crisis is likely to blow a €22 billion hole in the State’s finances and could see half a million people losing their jobs, The Irish Times reported. In its latest quarterly bulletin, published on Friday, it says lost tax revenue and increased spending on various support schemes will see the exchequer move from a €2.2 billion surplus to a €19.6 billion deficit this year. It predicts the crisis will lead to the loss of up to 500,000 jobs as the economy shrinks by 8.3 per cent.

Irish medical diagnostic company Trinity Biotech has booked a $24.4 million (€22.2 million) non-cash impairment charge, is closing a facility in California and is exiting two markets in which it operates, The Irish Times reported. In more positive news, however, the group also said it was close to completing a test to quickly detect Covid-19, and developing a second test that will indicate who has immunity. The Nasdaq-listed group on Tuesday announced a 6.8 per cent decline in 2019 revenues to $9.4 million.

The doomsday predictions have started. The Economic and Social Research Instiute (ESRI) last week forecast the Irish economy could shrink by 7 per cent in 2020 and that we could have 350,000 job losses as a result of coronavirus-triggered shutdown, The Irish Times reported. However, this was based on the restrictions lifting within 12 weeks. EY Ireland upped the ante yesterday by suggesting the hit could be as big as 13 per cent if the shutdown extends over a more prolonged period to August.

Aer Lingus is laying off more than 60 contract workers who argue they qualify for Government payments to businesses that keep staff in jobs during the coronavirus crisis, The Irish Times reported. The airline told staff last week that it was cutting pay by 50 per cent in an effort to see the company through the coronavirus pandemic that has grounded flights across Europe and the United States and brought its industry to a standstill.

Thousands of older people in long-term arrears on their mortgages could benefit from a debt resolution option if personal insolvency legislation is changed, a debtor advisory group has said, The Irish Times reported. Claire Kelly, chairwoman of the Association of Personal Insolvency Practitioners, which represents financial advisers who help people in debt, said the legislation needs to be “tweaked” to permit debt-for-equity swaps as a debt rescue solution after a High Court ruling this week.

Cork radio presenter Neil Prendeville and David Hall’s ambulance company, Lifeline, are included in the latest list of tax defaulters. Mr Prendeville, who is also a newspaper contributor, paid a total of €541,636 after a revenue investigation following an underdeclaration of income tax, The Irish Times reported. He was ordered to pay €327,663 in tax with the remainder in interest and penalties. Mr Prendeville’s solicitor John Boylan, of BDM solicitors, said an error was made by a firm of accountants which previously handled the broadcaster's affairs.

An internal Insolvency Service of Ireland (ISI) report raised concerns about the business model of a company which provided advice to over 600 people in mortgage arrears under a State-funded scheme to assist distressed borrowers, The Irish Times reported. New Beginning was paid more than €330,000 under a scheme to assist distressed borrowers, but did not directly set up any personal insolvency arrangements to restructure debts, the report found.

Significant legislative changes are needed to allow “debt-for-equity swap” solutions for insolvent personal debtors facing difficulties repaying their mortgages, a High Court judge has said, The Irish Times reported. Scores of borrowers hoping for approval for these swaps to give them a fresh financial start in personal insolvency cases face uncertainty due to the judge’s ruling. Mr Justice Denis McDonald found that the courts cannot approve “debt-for-equity swaps” in personal insolvency arrangements without the consent of the relevant secured creditor.