"In light of the recommendations from supervisory authorities, we urge all banks that have not already decided to do so to refrain from making distributions during this period and to use the freed capital and available profits to extend credit or other urgent financing needs arising from the ongoing crisis to their customers in a way that helps to ensure preserving economic activity. We call on the banking sector to support households and corporates affected by the COVID-19 outbreak, with the aim of ensuring business continuity," the ministers said.
"In addition, we welcome the recent statements and recommendation by the European Insurance and Occupational Pensions Authority (EIOPA) on the identification of a number of tools allowing for flexibility within the current Solvency II framework for insurance undertakings. We urge insurance companies to follow up on EIOPA’s statements to take timely and comprehensive measures to preserve their capital position, including the temporary suspension of all discretionary distributions, and to continue to act in the best interests of consumers," the ministers said.
The ministers called for a fast implementation of urgent measures agreed last week at a meeting of the Eurogroup in inclusive format when a €540 billion package was agreed to help the economy.
The Croatian presidency of the Council of the EU has pledged to conduct in a speedy fashion negotiations on the proposal put forward by the European Commission regarding a new instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE).