Brian Lenihan Jnr (Dublin West, Fianna Fail)

Regarding the query of Deputies Burton and Morgan on timeframes and the urgency of loans to small and medium sized businesses, in all discussions with the institutions I have stressed that the core concern of the Government is that the banking sector should function as a motor for the economy. In particular I referred to the prospect that early next year many businesses will face grave difficulties if the financial institutions do not take a more lenient view on the extension of credit, the term of loans, the provision of overdraft facilities and the provision of stocking facilities. I have brought these concerns to the attention of all financial institutions.

Regarding the question of recapitalisation, raised by Deputies Burton and O'Donnell, I have always maintained that as the banks are private institutions there is an onus on them in the first instance to access private capital. I did not characterise any particular form of private capital as desirable in itself. I agree with Deputy O'Donnell that the recent initiative of the institutional investors is welcome.

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