AIB first bank to meet with minister over ‘stonewalling’ of loans to SMEs

AIB will today be the first bank to answer the summons of Enterprise Minister Batt O’Keeffe to discuss the stonewalling loan requests to small and medium-sized enterprises.

Bank of Ireland, IL&P, and other banks are expected to meet Mr O’Keeffe later this week, when it is expected that he will issue a statement on the outcome of the talks.

The minister believes “some bankers” are showing little regard for taxpayers by stonewalling loan requests from viable small firms. He will also meet John Trethowan, director of the Credit Review Office set up by the Government to address the access to finance for businesses.

Mr O’Keeffe has accused some bankers of showing “little regard for Irish taxpayers and the Government by not keeping their side of the bargain and lending to viable small and medium-sized enterprises (SMEs).

“Despite the taxpayer pumping billions of euro into the banks, the small business owners I have met since becoming Minister for Enterprise, Trade and Innovation, tell me they are still being stonewalled when it comes to getting credit to keep going or to expand.

“My experience so far in this portfolio is that some bankers are showing scant regard for Irish taxpayers and the Government by not keeping their side of the bargain and lending to viable SMEs. It is not acceptable that lip service be paid to Government demands of banks to lend to viable businesses.”

Mr O’Keeffe believes it is time for banks to show gratitude to taxpayers for the massive sacrifices they have made in putting the country on the road to economic recovery.