SMEs get right to appeal loan refusals

SMALL and medium-sized enterprises (SMEs) have been granted the right to appeal the refusal of banks to give them loans.

The initiative announced by Finance Minister Brian Lenihan in the budget was described as “constructive and helpful” by the Irish Banking Federation (IBF) who welcomed the new credit review system on business lending, which will come under the NAMA legislation, other commentators were less welcoming.

Aimed at SMEs, sole traders and farm enterprises currently finding it difficult to get loan applications accepted; a regular analysis of appeals and their outcomes – across all banks – will be carried out.