Dáil Éireann Debate, Tuesday - 18 May 2010
195 Deputy Seymour Crawford asked the Minister for Finance his plans to assist those companies with borrowings of less than €5 million that do not come under the National Asset Management Agency structures; his views on the fact that many of these are equally as important for the retention of jobs as those who have already been facilitated through NAMA; and if he will make a statement on the matter. [20467/10]
Amharc ar fhreagraThe National Asset Management Agency (NAMA) has been established to remove the portfolio of risky assets from the balance sheets of relevant institutions. It has not been established for the benefit of borrowers, whether their borrowings are above or below €5 million. Borrowers whose loans are transferred to NAMA will continue to owe the full amount borrowed and the conditions of their loans will generally remain the same. NAMA will manage these loans in the best interest of taxpayers and it will have a range of options to pursue the lender including the seizure of property or other assets which are the security to the loan.
Of course, I am anxious that jobs and businesses are supported to the maximum extent possible. In that regard, I have sought to ensure that the banks, which have been supported by the State, comply with their responsibilities. In relation to small and medium enterprises, specific lending targets — not to include significant sums in respect of land development and property lending — were recently imposed by the Government on both AIB and Bank of Ireland. They will make available for targeted lending not less than €3 billion each in new or increased credit facilities to SMEs in both 2010 and 2011. This in particular must include funds for working capital for businesses. This will help to sustain the economy and foster growth. The lending targets will be reviewed as the needs of the economy change. To ensure the proper management of these funds the two banks were required to submit SME lending plans both by geography and sector for 2010 and 2011. Both banks have been informed that the plans must not include significant sums in respect of land development and property lending. Mr. John Trethowan, as our new Credit Reviewer, will be reviewing bank lending policies as part of his remit.
