ECB tells banks not to pay dividends until Jan 2021 over virus crisis

The ECB today urged banks to refrain from paying dividends or offering bonuses until January 1, 2021. — AFP pic
The ECB today urged banks to refrain from paying dividends or offering bonuses until January 1, 2021. — AFP pic

FRANKFURT, July 28 — The ECB today urged banks to refrain from paying dividends or offering bonuses until January 1, 2021, in order to ensure they have sufficient buffers to survive the economic storm unleashed by the coronavirus crisis.

The recommendation extending a previous call to halt such payments until at least October 2020 “remains temporary and exceptional and is aimed at preserving banks’ capacity to absorb losses and support the economy in this environment of exceptional uncertainty,” said the ECB in a statement. — AFP

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