Phil Hogan
Question:16 Mr. Hogan asked the Minister for Finance his views on whether the Irish banking system could do more to promote enterprise and employment; and if he will make a statement on the matter.
Written Answers. - Banks' Enterprise and Employment Promotion.
As I am sure the Deputy will appreciate, Irish banks are independent commercial organisations who are ultimately responsible to their shareholders. However, I have taken every opportunity to remind the banks of the important role they can play in Irish economic development.
The response of the banks has been positive and a number of schemes have been established to help new and existing business.
In 1989, in response to an initiative by my predecessor, the commercial banks agreed to provide up to £10 million in loans to young entrepreneurs on certain terms. The main feature of these terms was that the loan would be at a reduced rate of interest and the banks would not demand personal security on these loans.
In 1991 the four associated banks agreed to provide a further £15 million in loans at favourable rates for the creation or development of small and medium sized businesses with employment potential. This was within the context of the Programme for Economic and Social Progress.
To date this promise of £25 million has been exceeded by the banks and more than £28 million has been advanced to over 400 projects.