‘Make more of Euro bank’

Ireland should make more use of the European Investment Bank in the battle to get more credit flowing to private enterprise and the SME sector, in particular, according to Department of Finance chief John Moran.

Addressing the International Corporate Restructuring Summit at the Convention Centre in Dublin yesterday, Mr Moran said calls for such things as a national or public development bank are technically unnecessary as we essentially have one already in the form of the EIB, and we should use it more.

Mr Moran was named as a director of the EIB earlier this year.

Mr Moran said the key signs of the ongoing progress of recovery will be continuing improvement in domestic job numbers and continued international investor confidence, as seen by the rise in demand for Government debt.

Mr Moran said while Ireland still has one of the highest household debt levels in the EU, there are increasing signs of stabilisation and a balancing out of disposable income.

Mr Moran said the issue of how to get credit flowing to enterprise remains “an area that policymakers and banks have to continue to exert pressure in order to get a resolution”.

He added that it would be too simplistic to suggest the problem was either down to companies not borrowing or banks not lending, saying there are “myriad shades of grey” surrounding the argument.

With around 70% of employment coming from the SME sector, Mr Moran said good credit flow to small business remains one of the keys to the long-term economic well-being of the country.

He also said the completion of a European banking union was crucial and that more Irish SMEs should be open to attracting international investment.