* Ireland expects at least 100,000 job losses by end of
March
* Central bank cuts counter-cyclical capital buffer to 0%
* Introduction of systemic risk buffer also deferred
(Adds detail, context, quotes)
By Padraic Halpin
DUBLIN, March 18 (Reuters) - Ireland's five retail banks
agreed to implement a loan repayment break of up to three months
for those affected by the spread of coronavirus as the central
bank on Wednesday cut the amount of capital lenders must set
aside as extra protection.
Ireland expects its number of coronavirus cases to rise to
15,000 from 292 within two weeks. It has shut universities,
schools, creches and pubs to slow the spread - restrictions its
prime minister estimates will cost at least 100,000 jobs by the
end of March.
The banks will defer court proceedings for three months, are
ready to provide working capital and are committed that payment
breaks for businesses and personal customers will not adversely
affect customers' credit records, the lenders' representative
body said after a meeting with the finance minister.
Minister Paschal Donohoe said that landlords whose tenants
are struggling will also be offered the three-month break.
Donohoe said this should allow landlords to exercise forbearance
and that, while the state cannot legally stop them, no landlord
should evict anyone.
Donohoe also said that banks can defer stamp duty due on
credit cards to July and he raised the limit on contactless
payments to 50 euros ($54.16) on health grounds to discourage
cash transactions.
The lenders - Bank of Ireland, Allied Irish Banks
, permanent tsb, KBC Bank Ireland and
RBS's Ulster Bank, are ready to respond promptly to any
further changing needs for customers, Banking and Payments
Federation Ireland said.
The Irish entral bank cut the amount of capital banks must
set aside as extra protection against risks from future crises
to zero to support the economy, households and businesses
through the coronavirus pandemic, it said.
The so-called counter cyclical capital buffer (CCyB) will be
cut to 0% from 1% no later than April 2 and the regulator plans
no subsequent increase before the first quarter of 2021 at the
earliest.
Donohoe said the impact of the cut will free up more than 1
billion euros ($1.1 billion) of capital and that he had also
decided to defer introduction of the systemic risk buffer, an
added capital requirement under consideration by the central
bank before the outbreak.
A central bank statement said that Ireland's financial
system has built up capital and liquidity buffers since the
banking crisis a decade ago precisely for periods such as this.
Donohoe said he was absolutely confident he would be able
put forward "a very attractive plan" to financial markets for
how Ireland will fund the coronavirus-related measures, noting
the reserves the state has built up in its "rainy day fund" and
constant pre-funding by the country's debt office.
($1 = 0.9233 euros)
(Reporting by Padraic Halpin
Editing by David Goodman)
