Michael McGrath (Cork South Central, Fianna Fail)

I thank the Minister of State for his reply. I am glad he acknowledged that the key test is the draw down of new credit by businesses in the country. I am concerned that we are still witnessing a situation of revolving credit where banks are bundling existing credit facilities such as overdrafts and company credit cards that businesses have, repackaging them as term loans and reporting them to the Government as new credit which they are not. They are recycled credit.

When this issue is being reported upon, I would like the Minister of State to note the figures from the Central Bank and compare the amount of new credit drawn down and put into circulation in the economy with what the banks tell him they have sanctioned. Only then can we get a real handle and picture of the amount of credit that is being put into circulation to allow existing businesses to continue and new investments to be created.

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