Written answers

Wednesday, 19 January 2011

Department of Enterprise, Trade and Innovation

Credit Availability

9:00 pm

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 106: To ask the Minister for Enterprise, Trade and Innovation the latest position regarding his discussions with the main banks to ensure that credit is made available to all businesses and particularly to small and medium-sized enterprises; when he last met the banks to discuss these issues; and if he will make a statement on the matter. [2529/11]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I have met with Allied Irish Banks and Bank of Ireland throughout 2010 to discuss the availability of bank credit for businesses, especially SMEs. I last met with AIB on 9 November 2010. My officials met with Bank of Ireland on 17 December 2010. At these meetings, the banks were reminded of the purpose of the recapitalisation package and of the huge investment of taxpayers' money into the banks aimed at getting our economy moving again.

The message from the two main banks was that they were open for business and available to provide credit to viable businesses. They assured me that they were fully committed to supporting businesses and would meet the requirements laid down for them in the Recapitalisation package of 30 March 2010.

I have ongoing contact with the main banks in relation to their lending to businesses and will, together with my colleague the Minister for Finance, and John Trethowan of the Credit Review Office, continue to ensure that they meet their lending commitments under the 2010 Recapitalisation package in terms of providing sufficient credit to the business sector. In this regard, John Trethowan recently indicated that the situation was much more positive for bank customers than it was six to nine months ago.

As part of his Second Quarterly Report on SME Lending published on 18 November 2010, John Trethowan indicated that each of the banks have shown a positive attitude to the Credit Review Office appeals process, and the banks' Executives have been asked to ensure that this attitude is shared with their front-line staff.

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