Terence Flanagan (Dublin North East, Fine Gael)
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Question 31: To ask the Minister for Finance if he has assessed the steps necessary to ensure that there is a continuing flow of credit for enterprises and families; and if he will make a statement on the matter. [38770/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The extended international credit crunch which we have experienced has brought home to all of us the pivotal role of the financial system in the economy and in the day-to-day lives of ordinary people. An important aim of the Scheme of Guarantees we have introduced is to ensure that we have a banking system that as a whole works effectively, efficiently and competitively in facilitating all the day-to-day ordinary economic transactions of commercial, business, family and social life. The scheme therefore includes the application of strict terms and conditions on covered institutions to ensure that the public interest, which includes the general consumer and small business sector, is paramount.

By putting guarantees in place we have removed a major obstacle to financial institutions continuing to play their proper role in facilitating enterprises and individuals with credit.