Cork Co-op Marts chief accuses banks of squeezing farmers for credit

BANKS were accused yesterday of bouncing farmers’ cheques despite their accounts being only marginally overdrawn.

Cork Co-op Marts chief executive Sean O’Sullivan, who made the accusation at the IFA-organised Economic Forum of Irish Farming and Food Industry leaders, said the banks might say they were open for business, but that was not the experience on the ground.

“There is a severe deficiency in the levels of support given by the banks and we know about it on the ground in the last six to nine months. There is a severe credit squeeze,” he said.

Mr O’Sullivan said farmers had told him they were unable to access credit to buy new stock and this would have a detrimental knock-on impact on the sector.

It was “unfortunate and unfair” that farmers were paying the price for what had happened in the banking sector.

He called for what he termed a real partnership deal to be put in place to allow credit flow to the sector. This would be similar to what had been agreed between the farm organisations and the banks in the 1980s crisis.

Michael Dowling, head of agri strategy with Allied Irish Banks, said he could not comment on individual cases.

Mr Dowling said his bank was open for business for farmers and small- and medium-sized enterprises on the basis that borrowers met the criteria of having a good track record and the ability to repay.