Joan Burton (Dublin West, Labour)
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Question 192: To ask the Minister for Finance the relevant information which has been put at his disposal with regard to the availability of credit to small businesses here; if he has been provided, and if so if he will make available, monthly or other regular statistics analysing these credit flows; if he has in recent months instructed the Central Bank, the Financial Regulator or other appropriate authorities to step up monitoring of such credit flows; and if he will make a statement on the matter. [46942/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Nobody wants a situation where viable businesses fail because banks will not lend them money. At my meetings with certain financial institutions over the last two weeks, I asked those institutions covered by the Government's guarantee Scheme 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. I have, therefore, welcomed the fact that certain institutions have announced initiatives in this regard.

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. Additionally, with my colleague, the Tánaiste and Minster for Enterprise, Trade and Employment, I have been in regular contact with the banks regarding the flow of lending to small business.

The Central Bank's October Monthly Statistics showed that lending to the Irish economy was essentially flat in October and this is a matter of concern. However, we should be cautious about drawing strong conclusions from one month's data. Forfás/Enterprise Ireland are surveying 200 clients or County Enterprise Boards and Enterprise Ireland in order to gather more detailed information.