Skip to main content
Normal View

Credit Availability

Dáil Éireann Debate, Tuesday - 8 April 2014

Tuesday, 8 April 2014

Questions (169, 171)

Bernard Durkan

Question:

169. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which Government policy towards assisting small and medium-sized enterprises by way of enhanced lending for working capital or other purposes has been successful to date; and if he will make a statement on the matter. [16803/14]

View answer

Bernard Durkan

Question:

171. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects credit, including working capital, to be made available by the lending institutions to small and medium-sized enterprises; and if he will make a statement on the matter. [16821/14]

View answer

Written answers

I propose to take Questions Nos. 169 and 171 together.

 As 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, including working capital, to SMEs. Both banks have achieved their lending targets.

The credit review process remains available to any SMEs whose credit has been reduced or withdrawn by AIB or Bank of Ireland as well as when credit is refused by them. I would strongly advise any SME whose credit is reduced or withdrawn to avail of the services of the Credit Review Office.

Action Plan for Jobs 2014 contains a range of actions 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, which may include supports for working capital purposes.

In addition, the SME Funding Consultation Committee, chaired by the Department of Finance, provides a forum for consultation with stakeholders around Government policy regarding the provision of credit to SMEs.

Top
Share