Dr Ali Ugur, chief economist with Banking and Payments Federation Ireland, has confirmed that banks are looking at extending the loan repayment breaks past their initial three months.

Dr Ali Ugur, chief economist with Banking and Payments Federation Ireland, has confirmed that banks are looking at extending the loan repayment breaks past their initial three months.  
Speaking on Morning Ireland, he said there has been significant progress achieved in trying to widen the payment break and he believes “they are very close to it”. 
“We have done a significant amount of work by introducing the first payment break in a way for mortgage holders and SME customers. We recognise it has been an ongoing issue for a lot of people,” the economist said. 
The scheme has already seen a huge uptake when it was announced in mid-March to help households and firms impacted by the Covid-19 crisis.  
Dr Ugur said banks are working closely with customers and while they do not have exact number of SMEs who have been put on the scheme, he understands it is significantly higher than 14,000. 
He said Irish SMEs will also need a range of other supports if they are to survive and recover over the coming months.  
Banking and Payments Federation Ireland has today published an economic recovery plan for small and medium-sized enterprises, and said that a new state guaranteed Covid-19 business support fund is needed. 
BPFI said that a new state guaranteed scheme would enable government guarantees of emergency loans to Irish SMEs, temporarily distressed as a result of Covid-19, but who are otherwise creditworthy borrowers. 
Dr Ugur said the estimated scale of the proposed new guarantee scheme could range from €6 billion – €8 billion, depending on the number of Irish SMEs that would require it in the economically challenging months ahead. 
The economist said he believes this state guarantee business fund is “crucial” to help SMEs and provide them with liquidity during this crisis until some sort of normality is returned to the economy. 
He said banks will be used as a channel to lend the money through the state guarantee fund.  
“It is widely acknowledged that this is one of the most significant tools used across Europe to provide the amount of liquidity necessary for SMEs. The Central Bank acknowledged that banks will not be able to do it on their own.”
He said banks have experience dealing with distressed customers and have gained significant experience. 
He said they have worked with SMEs who have gone through a crisis period before and have survived.