Banks €12billion lending commitments must help local SMEs’
The commitment by AIB and Bank of Ireland to lend €12 billion over the next two years to small to medium sized businesses must be adhered to and will be closely monitored by the Government and its appointed Credit Review Office, according to local Fianna Fáil TD Niall Blaney. 14/07/10“One of the conditions of the Government’s recapitalisation of the banks was that they would make credit available to viable small and medium sized enterprises.
“The banks have effectively been bailed out following years of reckless habits and they must now show their respect for the taxpayer who has invested in their recovery by lending to SMEs, and in turn helping to create and maintain jobs,” Deputy Blaney said.
“The banks have now submitted details of their lending plans, which will include a dedicated €3 billion each, this year and next, for SMEs.
“The Government will receive monthly progress reports on these plans to ensure that the banks are complying with their commitments.
“It is crucial that SMEs start getting proper access to credit again. They are the key drivers of growth in Donegal and around the country, and they need access to credit to survive.
“The Credit Review Office was established by the Government to provide an independent right of appeal to businesses seeking credit from banks that benefited from recapitalisation. The office has helped a small number of businesses since its establishment but it can do more. Bank of Ireland and AIB are now required to make borrowers who are refused credit aware of the facility because it’s thought that a lack of awareness is one reason for its limited reach to date.
“I want to encourage any local business that is experiencing difficulties to contact the Credit Review Office with their details. It can be contacted at 1850 211 798 or by email at info@creditreview.ie.
“The Minister for Finance Brian Lenihan TD will continue to work with the Credit Reviewer to ensure that this plan delivers for businesses in Donegal around the country,” Deputy Blaney concluded.
