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  "documentTitle": "Deleveraging Europe",
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  "notes": "Part of a 'Deleveraging Europe' report series.",
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      "text": "GDP growth: 3.4%",
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      "text": "Various financial support measures were introduced in Ireland at the onset of the pandemic, including wage subsidies, unemployment payments, business grants/loans, credit guarantees, tax deferrals and payment moratoria.",
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      "text": "Loan provisions by Ireland's main banks increased significantly in FY 2020, rising to €2.7bn from just €241m in the previous year, as banks prepared for the credit stress caused by the pandemic. The banks made heavy provisions as the pandemic took effect in the first half of the year, reducing their charges in the second half of the year despite returning to lockdowns as the second wave of the virus took effect.",
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      "text": "AIB paused Projects Oak and Iris as the pandemic unfolded, resuming them only during the final quarter of the year. Project Iris was subsequently sold in first half 2021 to Home Solution Initiative group, a consortium that includes LCM Partners and provides ethical borrower-friendly solutions. Project Oak was sold to a consortium of Mars Capital and Apollo. AIB is also planning to exit",
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      "text": "2019 was a busy year for the Irish portfolio loan sales market with €7.7bn traded, but the market was frozen in 2020 as the pandemic brought a number of processes to a halt. Just one sale eventually closed in 2020, with Citi securitising a €1.4bn performing BTL book from Permanent TSB, with PIMCO as the main investor.",
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      "text": "The pandemic had an uneven impact, with sectors focused on the domestic market worst hit. Distribution, transport, hotels and restaurants registered a decrease of 16.7% in revenues while professional, administrative and support services declined by 15.5% and construction by 12.7%. In contrast, the more globalised sectors performed well with industry (excluding construction) growing by 15.2% and information and technology by 14.3% (CSO).",
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      "text": "At the start of the pandemic, 8% of all principal dwelling house (PDH) mortgage accounts in Ireland were in arrears to some extent. The level of arrears has fallen considerably in the years since the GFC, thanks to a strengthening economy and lenders seeking better resolutions, but arrears remain elevated, and long-term arrears represent a high proportion of those under financial stress. Despite this decline, the remaining arrears cases are concentrated increasingly in the longer-term arrears. A high number of PDH mortgages remain in long-term arrears some ten years after the GFC.",
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      "text": "After years of strong growth following the GFC, Ireland was hit particularly hard by the pandemic and multiple lockdowns. Despite the pandemic, GDP grew 3.4% in 2020 (CSO). This was driven by the export sector, where many international companies use Ireland as a gateway to the European market. The domestic economy struggled, however. Modified Domestic Demand saw the economy shrink 5.5% in 2020 with household consumption falling 9%.",
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      "text": "The Irish residential mortgage market had experienced sustained growth prior to the pandemic, with confidence returning to the housing market after the GFC. The housing market has continued to defy expectations of a heavy decline during the pandemic: ongoing supply shortages were compounded as construction came to a standstill during the spring 2020 lockdown. As a result, the Society of Chartered Surveyors Ireland (SCSI) has estimated that prices are set to rise by an average of 4% in 2021. Residential property values, including houses and apartments, fell by just 0.4% (CSO) nationally in the year to October 2020.",
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      "text": "Data released by the Central Bank of Ireland indicate that over half a million private sector employees were reliant on some form of government financial support at the end of August 2020, and also that about 10% of Irish mortgage holders took advantage of COVID-19 payment holidays. Although more than half of these borrowers have since returned to making full payments, the extent of any repayment problems will not be clear until sometime after other borrowers have resumed their normal repayment schedules.",
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