Kieran O'Donnell (Limerick East, Fine Gael)
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Question 68: To ask the Minister for Finance the measures he proposes to ensure that the recapitalisation of the banks will ensure that credit is provided to businesses and consumers; and if he will make a statement on the matter. [45382/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As outlined in my statement of 28 November, I have asked the covered banks to examine their options to attract or raise private capital to underpin their long term sustainability and support their lending to the economy. I am not promoting or supporting any particular proposal nor would it be appropriate for me to do so. I have however asked all the covered institutions to engage actively with all credible proposals and of course I am prepared to explore proposals for what Government participation or involvement may accompany the private investment.

Further, I have also asked these Institutions to consider the contribution that they can make to the economy through appropriate credit initiatives in relation to small and medium sized businesses and otherwise. On foot of this request several Institutions have announced comprehensive SME support packages.

The Deputy may also wish to be aware that I recently met Mr Plutarchos Sakellaris, Vice-President of the European Investment Bank, which recently announced that it was providing additional funding through its lending facility for SMEs in the European Union. Mr Sakellaris confirmed that the Bank has been in discussion with a number of Irish financial institutions about participating in this facility for SMEs and that the EIB hopes that agreements to provide such loan facilities can be finalised as soon as possible. I have urged Irish banks to utilise the facility to the maximum extent possible with a view to making the additional funding available to SMEs as soon as possible. It is therefore pleasing to note that a number of banks have announced their intention to do so.