Dáil Éireann Debate, Thursday - 20 December 2012
97. Deputy Finian McGrath asked the Minister for Finance the amount of new lending approved and drawn down, as opposed to renewals or bundling of existing credit facilities by each of AIB and Bank of Ireland in 2012; and if he will make a statement on the matter. [57633/12]
View answerBank of Ireland in a press release on 17 December “confirmed that it has achieved and will exceed its €3.5bn SME lending target for 2012. This figure represents the Bank’s approvals for new and increased credit facilities for businesses and farmers. Credit approved for customers seeking restructured facilities are excluded from these figures as reported by Bank of Ireland.”
The bank considers that the actual amounts drawn down by SMEs which have been approved for credit is commercially sensitive information and does not release it.
AIB reports that it has approved credit of €3.75 billion to date and that €660m relates to New Lending.
The lending targets imposed on the two pillar banks are only a part of the Government’s strategy to ensure that viable SMEs are able to access the credit they need. In my recent budget statement, I announced a ten point tax reform plan to help small businesses. I also announced the sanctioning of the appointment of additional reviewers in the Credit Review Office to ensure that SMEs appealing the banks’ decisions to decline credit receive a considered and timely response to their application. We are currently engaged in a public consultation process in order to see what more the Credit Review Office can do to ensure SMEs are getting the support on bank lending they require and I would welcome any proposals from the Deputy on this topic which can be submitted to croassessment@finance.gov.ie. I would strongly urge viable SMEs to appeal any refusals of credit to the Credit Review Office.
