The Central Bank has said recent actions by the ECB will release upwards of €20bn for Irish banks to borrow and potentially loan out in non-mortgage lending. 

In an economic letter published today, the bank also says that actions like the Pandemic Emergency Purchase Programme (PEPP) will ensure that governments "can more easily issue debt to respond to the crisis" and the "cost of borrowing for governments is low."

It says the fiscal burden of the pandemic will be great but "monetary policy can ensure that interest rates on sovereign debt remain low" and can help prevent the impact "morphing into another sovereign debt crisis." 

In addition to these measures the Bank also points out that its lifting of a key reserve requirement last month has given banks here the capacity for new lending of between €10-€16bn. 

To put this in context, the Bank points out that last year total new lending to Irish residents was €30bn.