News of Improved Lending to SMEs

News of Improved Lending to SMEs is “Encouraging” – Ó Domhnaill

Fianna Fáil bye-election candidate in Donegal South West, Senator Brian Ó Domhnaill, has welcomed the news that lending to small firms by the country’s two main banks is improving.

Publishing its second quarterly report, the Credit Review Office, which hears appeals from small and medium-sized enterprises refused loans by Bank of Ireland AIB, said the situation was “continually improving.”

Responding to this Senator Ó Domhnaill said: “Given the importance of a steady flow of credit to job creation and economic recovery, this is very encouraging.

“We, via the Credit Review Office, are ensuring that AIB and Bank of Ireland meet their commitments to provide a total of €12bn in extra lending to the small and medium businesses over the course of this year and next.”

The head of the Credit Review Office, John Trethowan, also pointed out today that the perception that the banks are not lending to the SME sector was based on experiences form six to nine months ago.

“Nobody is saying that the situation is perfect”, Senator Ó Domhnaill said. “We all know the challenges faced by business today. However, we should take heart from the fact that things have moved on and we are on the right road.”

“The SME sector, which employs 700,000 workers and accounts for some 270,000 Irish businesses, is the bedrock of our domestic economy.

“Recognising that small and medium sized businesses will play a vital role in our economic recovery, I have fought to ensure that this Government introduced a number of measures aimed at supporting the sector. These include:

• Requiring Departments to pay their business suppliers within 15 days
• Overhauling the public procurement policy to ensure greater SME access to public contracts.
• Banning upward only rent reviews
• Establishing a High Level Group on Business Regulation which has identified more than €20 million worth of administrative cost savings for business
• Providing financial support to almost 2,000 companies through the employment subsidy scheme and the enterprise stabilisation fund
• Providing €278 million to Enterprise Ireland in 2010
• Establishing the employer job (PRSI) incentive scheme to reduce business costs associated with hiring new employees.”

Posted: Nov 18, 2010     |     Categories: Donegal South West