Batt O'Keeffe (Cork North West, Fianna Fail)

There are two issues here. First, we have increased the amount of credit available to SMEs through both banks. We hope that process will lead to greater availability of credit to small and medium sized businesses. Second, we do not want a loan guarantee to supplement that.

Some of the medium sized businesses find it easier to get credit than smaller businesses. Approximately 30% of the medium sized businesses avail of credit compared with 19% of small businesses. Many small companies do not have collateral. Many research and development and start-up companies do not have collateral and are not seen as credit worthy by banks. We must find a way to help, nurture and grow those companies.

We will bring the loan guarantee recommendations to Government and the Government will have to look at them and approve them. We must make sure they are tailor made and will not be a burden on the taxpayer.

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