Lenihan: Banks will loan €12bn to business

BANKS will be forced to make €12 billion worth of lifeline loans to struggling businesses, Finance Minister Brian Lenihan last night pledged.

Mr Lenihan said he would bring in statutory orders if AIB and Bank of Ireland failed to let credit flow to hard-pressed firms.

The Finance Minister issued the threat as he unveiled details of a two- year plan for each of the two major banks to lend €6bn each to companies to help push Ireland clear of recession. But Fine Gael finance spokesman Michael Noonan dismissed the minister’s claims as empty threats which would cut little ice with banks.