AIB and Bank of Ireland must adhere to their commitment to lend €12 billion over the next two years to small to medium sized businesses.
This is the view of Fianna Fáil Galway West TD Frank Fahey, who said the banks will be “closely monitored” in this regard by the Government and its appointed Credit Review Office.
One of the conditions of the Government’s recapitalisation of the banks was that they would make credit available to viable small and medium sized enterprises. However numerous SMEs have complained that the banks are refusing to give them credit to enable them to continue, grow, and develop their businesses.
“The banks have effectively been bailed out following years of reckless habits,” said Dep Fahey. “They must now show their respect for the taxpayer who has invested in their recovery by lending to SMEs, and in turn helping to create and maintain jobs.”
The banks have submitted details of their lending plans, which will include a dedicated €3 billion each, this year and next, for SMEs.
The Government will receive monthly progress reports on these to ensure the banks are complying with their commitments. The Credit Review Office was established by the Government to provide an independent right of appeal to businesses seeking credit from banks that benefited from recapitalisation.
“It is crucial that SMEs start getting proper access to credit again. They are the key drivers of growth in Galway and around the country, and they need access to credit to survive,” said Dep Fahey.
Dep Fahey is encouraging any local business that is experiencing difficulties to contact the CRO with its details on 1850 211 798 or by email at [email protected]
