Freeing the credit lines

IT appears the banks are unwilling to lend enough money to keep business functioning.

It has been suggested they should be encouraged to loosen the purse strings by the creation of a Government loan guarantee scheme. However, it is difficult to see how such a scheme could be made to work efficiently and effectively.

It would be much more effective to increase the amount of tax relief banks can claim on bad debts.

The cost of such a scheme could be recouped by the imposition of a levy on bank profits.

John Stafford

Dargle Wood

Dublin 16