Minister O’Keeffe summons top bankers for talks over business credit crunch

‘Some bankers showing little regard for taxpayers by refusing to lend to viable SMEs’ - Minister

The Minister for Enterprise, Trade and Innovation, Batt O’Keeffe TD, is to call in the country’s top bankers to discuss their lending practices following reports that some small businesses are being ‘stone-walled’ when it comes to getting credit to keep going or to expand.

Minister O’Keeffe has accused some bankers of showing ‘little regard for Irish taxpayers and the Government by not keeping their side of the bargain and lending to viable small and medium-sized enterprises (SMEs)’.

Minister O’Keeffe said he will meet small business-owners in the regions over the coming weeks to hear their first-hand accounts of difficulties accessing credit.

And he will summon the country’s top bankers to the Department to discuss the credit crunch faced by some SMEs and what they are doing to address it.

‘Despite the taxpayer pumping billions of euro into the banks, the small business-owners I have met since becoming Minister for Enterprise, Trade and Innovation tell me they are still being stone-walled when it comes to getting credit to keep going or to expand.

‘My experience so far in this portfolio is that some bankers are showing scant regard for Irish taxpayers and the Government by not keeping their side of the bargain and lending to viable SMEs.

‘It is not acceptable that lip service be paid to Government demands of banks to lend to viable businesses.

‘Now is the time to show gratitude to Irish taxpayers for the massive sacrifices they have made in putting Ireland on the road to economic recovery after the arrogance, greed and reckless irresponsibility of our bankers that brought the country to her knees,’ said Minister O’Keeffe.

Minister O’Keeffe said that in return for recapitalisation the banks were to start lending again.

‘If that is not happening - and the evidence so far suggests to me that in some cases it is not - then I want to know why.

‘It is the least the Irish taxpayer deserves after the forbearance they have shown,’ said Minister O’Keeffe.

He said he will be closely examining proposals from Allied Irish Banks and Bank of Ireland showing how they will meet lending targets the Government imposed on them after making €3 billion available to each of them for new or increased credit facilities for SMEs this year and 2011.

‘I have also invited the credit reviewer, John Trethowan, to the Department for a meeting to discuss credit access for small business-owners.

‘If our banking policy is not working for SMEs, then it is our responsibility as a Government to make sure that it does.

‘If further action is required, we will act urgently and decisively,’ said Minister O’Keeffe.

ENDS\2212

Bernard Mallee

Special Adviser on Press and Communications

Minister Batt O'Keeffe TD

Minister for Enterprise, Trade and Innovation

Department of Enterprise, Trade and Innovation

Kildare St

Dublin 2

Tel: +353 1 631 3944

Fax: +353 1 631 2828

Mobile: +353 87 9173022

Email: bernard.mallee@deti.ie