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Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: I will leave it at that.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: That is something to change. I shall return to the figures quoted by Mr. Trethowan regarding lending. The banks were required to provide €8 billion for lending in 2012.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: Mr. Trethowan told me that out of that sum, €2.5 billion was new lending and, effectively, €4.5 billion was for restructuring. Does that €2.5 billion represent approved or drawn-down lending?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: Was it drawn down?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: Does Mr. Trethowan know the figure that was drawn down?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: The banks have contracted SME lending, from what we can see here, by €2 billion. They may even have contracted it by more because it may be sanctioned lending rather than drawn-down lending. Does the Credit Review Office analyse the figures in depth with the banks? I ask that it do so. The banks have been before the committee and the representative of Bank of Ireland told us that...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: That is €4.1 billion versus €2.5 billion. Someone here is not telling us the facts and I ask the Credit Review Office to go to the banks.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: Is that within the €2.5 billion?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: That is not new lending.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: May I ask a final question? I ask Mr. Trethowan to examine those figures in depth. Obviously that has not happened. Restructuring an overdraft into a term loan is not new lending.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: How much of the €2.5 billion is new lending that was drawn down?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: Mr. Trethowan said that some of it was overdraft restructuring.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: That is not new lending but new overdrafts.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: Much of the areas of interest to me have been covered. How many appeals were made from inception last year?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: Some 42% of the internal reviews ended up going to the Credit Review Office, with 331 cases out of 784 internal reviews. That is well below 50% of the banks' internal reviews going to the Credit Review Office. The 55% of appeals upheld gave rise to additional lending of €13 million. Does that amount to 250 incidents?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: Where does the figure of €13 million come from?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: The cases where the banks' decisions were overturned amount to €13 million and cases where they were not overturned amount to €7.7 million. The role of the Credit Review Office is within the SME sector. Is Mr. Trethowan's happy that the limit of €500,000 is high enough?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: Does the office charge for that opinion?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: Mr. Trethowan's office has the flexibility to deal with specific cases.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Access to Credit Provision: Discussion with Credit Review Office (20 Feb 2013)

Kieran O'Donnell: How many people are in Mr. Trethowan's organisation?

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