The five main banks have agreed a three-month suspension of mortgage and business loan repayments for customers affected by COVID-19.

Following a meeting with Finance Minister Paschal Donohoe, the banks are working on a simplified application process to make it easier for customers to receive support.

Banks have also agreed that any COVID-19 applications for a payment break will not adversely impact on credit records and court proceedings will be deferred for three months.

The CEOs of AIB, Bank of Ireland, KBC, Permanent TSB and Ulster Bank - along with their representative body Banking & Payments Federation Ireland (BPFI) - met with Minister Donohoe on Wednesday and set out a joint plan.

The banks are also working collaboratively to make sure that continuity of service plans are in place, that critical functions can continue, and that staff remain available to continue to service customers.

AIB headquarters on Molesworth Street in Dublin city centre | Image: Julien Behal

"The banking and payments sector is fully committed to working together and collaboratively to ensure provision of branch and payment services during this challenging period", BPFI said in a statement.

A payment break of up to three months for business and personal customers would be followed by ongoing reviews, depending on the scale and extent of the situation.

Customers wishing to avail of a payment break should contact their respective bank.

There have also been "initial discussions" with credit servicing firms and with non-bank lenders who provide mortgages.

The BPFI says they both have issues which need to be addressed with the Central Bank - but both are committed to working with the Government and industry to provide the flexibility that people need right now.

BPFI CEO Brian Hayes said: "These are exceptional circumstances in which people now find themselves and we believe they require exceptional measures.

A Permanent TSB branch in Dublin

"The banks are moving urgently to introduce measures that will best support businesses and personal customers impacted by the COVID-19 crisis.

"They will also require the full support of key stakeholders in order to make it happen”.

“We will play our part at this critical time.

"The banking sector will support our customers and the economy, and work to protect the safeguards built up within the banking system in Ireland over the last ten years including capital, liquidity and operational resilience.

"We will also work to ensure our economic sustainability beyond COVID-19.”