Dáil Éireann Debate, Thursday - 20 February 2014
72. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which credit remains available to small and medium sized businesses; if he has had submissions from the business sector in this regard; and if he will make a statement on the matter. [8817/14]
View answerAs the Deputy is aware, as part of the 2011 recapitalisation exercise, the Government imposed SME lending targets on AIB and Bank of Ireland for the three calendar years, 2011 to 2013. Each bank was required to sanction lending of at least €3 billion in 2011, €3.5 billion last year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks have achieved their 2011 and 2012 targets. I am informed that both banks sanctioned circa €4bn in lending in 2013.
In the forthcoming Action Plan for Jobs 2014 a range of actions are outlined to encourage access to credit for SMEs and enhance the measurement and reporting by the banks of their lending to the sector. These include:
- Work with KfW and the German Ministry of Finance to develop an initiative that will improve funding mechanisms for SMEs.
- Detailed data from AIB and Bank of Ireland will be collated and examined, on a monthly basis ensuring a more informed understanding of the SME bank lending environment, with a particular focus on new lending.
- The SME State Bodies Group will be rolling out a comprehensive communications strategy to ensure that SMEs are aware of the State supports for which they may be eligible.
In addition to my meetings with various business representative organisations in the context of the Budget and Finance Bill process, the SME Funding Consultation Committee, chaired by my Department, provides a forum for consultation with stakeholders around Government policy regarding the provision of credit to SMEs. In addition, officials from my Department, along with the Credit Review Office, recently met with representatives from Chambers Ireland, ISME and SFA to discuss issues pertaining to credit availability affecting their members. These meetings take place on a regular basis and inform the workings of the SME State Bodies Group.
