“Straightening out the banks will ensure a flow of credit for small and medium-sized enterprises in straitened times.” -Statement from Minister Éamon Ó Cuív TD

Scríofa ag Eamon Ó Cuív Dé Máirt, 11 Bealtaine 2010

Nuacht - Preaseisiúintí

Minister Éamon Ó Cuív has highlighted the Government’s decision that the two main lending agencies AIB and Bank of Ireland will meet specific targets for lending to small and medium-sized enterprises in the coming year. 

“Straightening out the banks will ensure a flow of credit for small and medium-sized enterprises in straitened times. This is possible because of the size of the measures that the Government has taken to clean up and recapitalise our banking system.

One of the primary objectives of the Government has to be the tackling of unemployment and the regeneration of businesses within our community. We are taking action with regard to AIB and Bank of Ireland that will ensure that enterprises get a chance to retain existing business and take advantage of opportunities that create new jobs.

The measures being taken require that AIB and Bank of Ireland make available not less than €3billion each for new or increased credit facilities for small and medium-sized enterprises in both 2010 and 2011.  Specifically, they must make funds available to businesses for working capital.

These funds will be a significant increase on the figures reported by the banks for 2009 and will help to sustain the economy and foster growth.  The figure will be reviewed on an ongoing basis as the needs of the economy change. Each of the two main banks will be required to submit their Small and Medium-sized Enterprise Lending Plans for 2010 and 2011, both by geography and by sector, to the Government within six weeks.

In addition to the above measures, AIB, Bank of Ireland, EBS, Anglo Irish Bank and the Irish Nationwide Building Society will be subject to an independent Credit Review Process overseen by former experienced banker, John Trethowan. This process will allow small and medium-sized enterprises, sole traders and farmers who have been refused credit or who have credit withdrawn, to apply for an independent review of the banks’ decision. Where the Credit Review Office recommends that credit should be granted, the banks will have to comply or explain. It will also provide an accurate independent assessment of the banks’ lending policies and procedures.

Mr John Trethowan, will also review the Small and Medium-sized Enterprise Lending Plans of the two banks as part of his remit as Head of the Credit Review Office, to ensure they reflect a realistic contribution to economic recovery, future growth and job creation.  The Government will decide, following his review, whether further action on lending targets is needed.”

The website of the Credit Review Office is up and running and open for applications. The website address for the Credit Review Office is www.creditreview.ie and the staff there can be contacted at 1850 211 789.

2010.05.11