Brian Hayes, CEO of Banking and Payments Federation Ireland
Former Fine Gael minister and CEO of Banking and Payments Federation Ireland responded to claims that guidance from European regulators undermine the Irish banks’ policy of applying interest and adding it to the principal of a loan at the end of a break period.
Speaking on RTÉ’s News at One, Mr Hayes said the EBA guidance, produced on 2 April, could not be clearer.
The guidance said that the sequencing of loan repayments could be changed but the interest rate could not; and if the interest rate was changed, this could be classified as forbearance.
This advice, he said, did not change until yesterday…
@brianhayesBPFI are you still sticking to the story that banks only found out yesterday that they don’t need to charge interest during payment break period. Here is a letter from Central Bank to me published on their website 3 weeks ago. I’ve highlighted it for you. ???? pic.twitter.com/mB9Xb34UOQ
— Pearse Doherty (@PearseDoherty) July 8, 2020