Minister O’Keeffe tells banks to lend to export firms on Middle East trade mission

2 November 2010

The Minister for Enterprise, Trade and Innovation, Batt O'Keeffe TD, has told senior bankers on a Government trade mission to the Middle East that they must 'return to first principles' and start lending to export-led Irish firms.

In a meeting in the Saudi capital, Riyadh, with representatives of Allied Irish Banks, Bank of Ireland Ulster Bank on an Enterprise Ireland trade mission, Minister O'Keeffe told the bankers that ‘over the past decade a gulf has opened between banks’ trade finance practice and their understanding of the needs of export firms’.

‘It is vital for Ireland's export-led economic recovery that the gap is closed immediately and that our banks properly re-engage with our small firms in providing them with the working capital they need to drive their exports in existing and emerging markets.

‘The reality is that without the support of Irish banks emerging markets such as the Middle East cannot be cracked.

‘The 45 firms with us on the Middle Eastern trade mission this week span a range of sectors and each of them need customised lending programmes to help them develop new trade lines in export markets.

‘Ireland’s economic recovery will be export-led and our export performance is much stronger compared to our counterparts in the eurozone.

‘But to capitalise on our strengths and build for recovery, we must drive our export footprint across the globe, particularly in new markets, and our banks are critical to the effort,' said Minister O'Keeffe.

The meeting with the banks was also attended by the chief executive of Enterprise Ireland, Frank Ryan.

The decision to include the country's main banks on the trade mission is an effort by the Government to better attune them to the needs of export-led Irish firms and new marketplace challenges.

Irish exports to Saudi Arabia and the UAE last year were €400 million and €276 million respectively.

‘By the end of the week, the banks should have a better insight into the challenges faced by Irish exporting firms and how they can help them to boost their market share overseas and create jobs at home.

‘I look forward to the banks’ continued participation on upcoming Enterprise Ireland trade missions,’ said Minister O’Keeffe.

The trade mission began on Monday in Riyadh before moving on to Jeddah and Dammam in Saudi Arabia and Abu Dhabi in the UAE later this week.

The 45 Irish firms joining Minister O’Keeffe on the trade mission span a range of sectors including construction, engineering, information communications technology, education, finance and consulting.

Minister O'Keeffe described the trade mission as ‘an important opportunity to promote Irish firms and generate new business opportunities and jobs here at home’.

ENDS

Bernard Mallee, Press Adviser to Minister Batt O'Keeffe, Department of Enterprise, Trade and Innovation, on Tel: +353 1 631 3944, Mobile: +353 87 9173022, Email: bernard.mallee@deti.ie