Small and Medium Enterprises

Dáil Éireann Debate, Thursday - 28 February 2019

Thursday, 28 February 2019

Questions (68)

Bernard Durkan

Question:

68. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which his attention has been drawn to particular circumstances in which small business borrowers on foot of a court judgment or otherwise who continue to make payments in line therewith are being forced into court for the purpose of repossession; if a particular intervention may be appropriate in such circumstance with particular reference to lending agencies no longer operating here; and if he will make a statement on the matter. [10208/19]

Written answers

Minister for Finance

As the Deputy is aware, the courts are independent in the exercise of their judicial functions, and as Minister for Finance I cannot intervene in matters before them.

The Central Bank has published regulations for firms lending to small and medium enterprises, these aim to strengthen protections for SMEs when borrowing from regulated lenders, they set out a framework which regulated entities must comply with when dealing with SME borrowers in arrears and financial difficulties. The SME Regulations require regulated entities to establish and maintain in writing policies and procedures for dealing with borrowers in financial difficulties.

My Department will continue to keep all relevant legislation under review in order to ensure that borrowers whose loans have been sold are properly protected. In addition, the Department of Finance expect that the Central Bank, as regulator of credit servicing firms, will be vigilant in this area and raise any specific instances where they have found consumers have not had their protections upheld or that their positions have been disadvantaged.