€12 Billion credit for Businesses

Date: 14/07/2010
Posted by: Darragh

€12 BILLION CREDIT FOR BUSINESSES WILL SAVE AND CREATE JOBS

Small and medium sized businesses will benefit from €12 billion in credit facilities this year and next year as a result of specific lending plans that the Minister for Finance Brian Lenihan has approved for AIB and Bank of Ireland.

Small businesses will benefit from this funding stream. This is money that must be lent by the banks. The two main banks have put in place lending plans which were rigorously reviewed by the Government. Small businesses are under huge pressure at the moment. I see this too often in my own constituency in Dublin North and it's only right that the banks which are being supported by the State play their part in our recovery.

These credit lines arise from the recapitalisation of the banks announced at early this year. Both AIB and Bank of Ireland's SME lending plans are mapped out by geography and cover all types of small businesses. Crucially all businesses refused credit will be able to appeal to the Credit Review Office which will examine the credit application.

The Lending Plans of both banks have been reviewed by John Trethowan of the Credit Review Office. This office and the Department of Finance will receive monthly progress reports from the two banks which will allow us to ensure they deliver on the strong commitments given to support viable businesses across the country. There has only been a small number of appeals to the Credit Review Office so far and I would urge SMEs who are refused credit to invoke the internal appeals system and go to the CRO if needed. More information is available about it on www.creditreview.ie.

The Government's overriding objective is to ensure that the recovery that's now underway protects existing jobs and creates new job opportunities. This will not be done if the banks don't lend. They must now step up to the plate and support businesses.

The Government has announced a comprehensive plan to restore the banks to order. This has unfortunately required a significant burden on the State and the taxpayer but it is necessary to ensure we have a strong viable banking system which will support businesses, jobs and economic recovery.