Joe McHugh (Donegal North East, Fine Gael)
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Question 88: To ask the Minister for Finance his views on the €30.5 billion that has been designated to banks participating in the National Asset Management Agency; the amount of this money that has been returned by those banks to the European Central Bank; the instruments in place for ensuring that this money is available for lending to Irish citizens; and if he will make a statement on the matter. [16323/11]

Michael Noonan (Limerick City, Fine Gael)
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I presume the Deputy's question refers to the value of the bonds issued by NAMA to the institutions participating in the Scheme. These bonds are available to be used by these institutions to obtain liquidity from the normal monetary operations of the Eurosystem. This funding plays an important role in supporting the domestic banking system and in facilitating their lending into the economy. The Deputy will be aware that the banking system restructuring plan creates capacity for the two Pillar Banks, Bank of Ireland and AIB, to provide lending in excess of €30 billion in the next three years. SME and new mortgage lending for these banks is expected to be in the range of €16-20bn over this period. In each bank, a team of senior managers will be dedicated to the task of ensuring lending continues to grow to support economic growth. This lending capacity is incorporated into the banks' deleveraging plans which allow for repayment of Central Bank funding through asset run-off and disposals over the period to 2013.

Both pillar banks provide my Department with monthly figures on balance sheet volumes, sanctioned facilities and geographic and industrial breakdowns of their SME lending. The Deputy may also be aware that under the terms of the government recapitalisation, both banks also produce a quarterly report which incorporates figures for sanctions and drawdowns by SMEs. The data contained in these reports will continue to be reviewed and analysed by my Department and the Credit Review Office to ensure that the banks are compliant with the terms of the Government recapitalisation as it relates to the provision of credit for SMEs.

As I have said before the Credit Review Office will, on application from the borrower, carry out an independent and impartial review of a bank's decision to refuse or reduce credit. This is another means of ensuring that the money is lent to the productive sector. I would strongly advise anyone who has unsuccessfully appealed through the bank's own internal appeals process to seek a review by the Credit Review Office.