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Ireland's recovery from the Covid-19 pandemic "may be bumpy and uneven", with some sectors thriving as others continue to struggle with the effects of the restrictions, Central Bank of Ireland Governor Gabriel Makhlouf said Wednesday, adding that the viability of some businesses will be "tested by the necessary tapering of government supports."
Speaking as the central bank published its latest Financial Stability Review, Makhlouf said it remains a central bank priority that "lenders continue to play their part in the management of the fallout from the pandemic". This he said, would involve financial institutions making restructuring and forbearance arrangements "to ensure that viable businesses survive, and that they do not begin to accumulate arrears in ways that caused such damaging long-term issues after the last crisis."
Overall, Makhlouf noted, economic and financial conditions have improved in Ireland over the last six months, with government support to date playing an important role in absorbing the shock to people's livelihoods and incomes.