Joe McHugh (Donegal North East, Fine Gael)
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Question 110: To ask the Minister for Finance if he will use the establishment of the National Asset Management Agency to secure guarantees from banks that temporary credit arrangements and stocking loans will be provided to farmers; and if he will make a statement on the matter. [32171/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The flow of credit is essential to the proper functioning of the economy. All of the Government's actions to stabilise the financial system have been undertaken in order to ensure that the banks continue to fulfil their essential function in providing credit for individuals and businesses which includes the farming community. The Deputy will be aware that much has been done to ensure the provision and monitor the flow of credit to viable businesses. These measures include specific commitments attaching to the State's recapitalisation of Allied Irish Bank and Bank of Ireland. A Credit Clearing Group has also been established, involving business groups including the Irish Farmer's Association, banks, State agencies and Departments which is examining cases of credit refusal referred to it.

The primary objective of NAMA is to cleanse the balance sheets of participating banks ensuring they are in a position to lend to the economy. The Government continues to examine potential options in relation to specific credit supply measures attaching to NAMA.