Banks are set to allow business and mortgage customers extend the term of their loans - meaning people would not face higher monthly payments after the COVID-19 crisis.
Currently, borrowers are able to avail of a three-month payment break, with banks working to increase that to six months for those who need it.
However, the Government today said businesses and mortgage holders are also set to be given the option to extend the duration of their loans.
Choosing to extend the loan would not impact a customer's credit rating.
The announcement comes following a meeting between Taoiseach Leo Varadkar and the chief executives of Ireland's five major banks - AIB, Bank of Ireland, Ulster Bank, Permanent TSB and KBC.
Ministers Paschal Donohoe and Heather Humphreys also attended today's meeting.
In a statement, the Government said: "The Government and the banks jointly recognised the challenge facing many businesses as the economy reopens.
"The Government welcomes the commitment by the banks to continue to play their part by working positively with their customers, in as supportive a manner as possible, to ensure that the recovery can take place as quickly as possible."
Meanwhile, the Banking & Payments Federation Ireland (BPFI) said today's talks were "extremely constructive".
CEO Brian Hayes said: “Our collective efforts are focused on ensuring Irish SMEs and their employees have the support they require and that they are in a position to trade and rebuild their businesses as Irish and global economies re-open in the months ahead.”
