Written Question: European Banking Authority guidelines

(Source: European Parliament)

Date submitted: 3 February 2021

Question for written answer E-000665/2021
to the Commission
Rule 138
Chris MacManus (The Left)

Subject: European Banking Authority guidelines

Under the European Banking Authority (EBA) guidelines, Member States may allow certain loans that are in arrears to be deemed ‘performing’ as a measure recognising the economic impact of the COVID‑19 recession.

This measure gives borrowers a break and is also designed to protect them from credit rating impairment and the charging of additional interest.

The Irish Government chose not to avail of the scheme after it was reintroduced in late 2020.

  1. Will the Commission monitor consumer rights and the impact of non‑renewal of the scheme in some countries compared to countries where the scheme has been extended?
  2. What safeguards are in place to protect Irish consumers facing a degradation of their credit rating, when in other countries the credit ratings of consumers in similar circumstances are not being affected?
  3. Why are Irish consumers who are now attracting additional interest on arrears allowed to be treated differently to borrowers in other countries?
%d bloggers like this: