Menu
01/07/2010
Call To Remove State Aid From Non-Lending Banks
Ireland's small business leaders have called on the Minister for Enterprise to remove state assistance from bailed out banks if the continue to refuse credit for businesses.
The Irish Small & Medium Enterprises Association (ISME), urged Minister Batt O’ Keefe, to "hang tough" with the state assisted banks and force them to comply with demands to open up lending to viable small businesses.
An ISME spokesman said failure to comply should result in state supports being withdrawn from the banks concerned.
The Association was reacting to reports that the Government are unhappy with insufficient plans forwarded by the banks on their commitments to provide funding to SMEs.
ISME Chief Executive, Mark Fielding said: “The continuing level of contempt and arrogance shown by the bailed out bankers towards the State and the taxpayers is beyond belief. Quite clearly the banks are attempting to slither out of any commitments made to Government. Decisive action is urgently required to force the banks to open their lending channels, which have effectively remained closed.
“The SME sector has, for too long, been promised decisive action by Government to address this serious issue, with little progress to date. It is essential that the banks are not let off the hook and that sustained pressure is maintained by Government to ensure that those viable SME businesses that require finance are facilitated. The sanction of immediate withdrawal of State assistance must be an option for those banks who continue to selfishly ignore Government demands”.
Meanwhile today, The Labour party have claimed state aid approval by the EU Commission has removed the last "roadblock" to Brian Lenihan’s plan to extend the bank guarantee.
In September 2008, we were told that the blanket bank guarantee would be the cheapest bank rescue in the world, and that it would only last for two years, up to September 29th 2010.
Labour's financial spokesperson Joan Burton said there was a "creeping extension" of the bank guarantee scheme, "with taxpayers set to remain on the hook for upwards of €200bn worth of the banks’ liabilities for up to 5 years".
Ms Burton said Irish taxpayers will also be looking at upwards of €40bn through NAMA.
"Far from being a cost-free bank rescue, the blanket bank guarantee has come to be a financial millstone likely to weigh down Irish taxpayers for generations to come," she said.
Ms Burton added: "Indeed, in his recent report into the banking crisis, the Central Bank Governor, Patrick Honohan, has said that the blanket nature of the original bank guaranteeThe government has recently admitted that the €22bn pumped into Anglo Irish Bank is unlikely ever to be seen again. The €2.7bn and counting being pumped into Irish Nationwide is likely to suffer the same fate."
(DW/BMcC)
The Irish Small & Medium Enterprises Association (ISME), urged Minister Batt O’ Keefe, to "hang tough" with the state assisted banks and force them to comply with demands to open up lending to viable small businesses.
An ISME spokesman said failure to comply should result in state supports being withdrawn from the banks concerned.
The Association was reacting to reports that the Government are unhappy with insufficient plans forwarded by the banks on their commitments to provide funding to SMEs.
ISME Chief Executive, Mark Fielding said: “The continuing level of contempt and arrogance shown by the bailed out bankers towards the State and the taxpayers is beyond belief. Quite clearly the banks are attempting to slither out of any commitments made to Government. Decisive action is urgently required to force the banks to open their lending channels, which have effectively remained closed.
“The SME sector has, for too long, been promised decisive action by Government to address this serious issue, with little progress to date. It is essential that the banks are not let off the hook and that sustained pressure is maintained by Government to ensure that those viable SME businesses that require finance are facilitated. The sanction of immediate withdrawal of State assistance must be an option for those banks who continue to selfishly ignore Government demands”.
Meanwhile today, The Labour party have claimed state aid approval by the EU Commission has removed the last "roadblock" to Brian Lenihan’s plan to extend the bank guarantee.
In September 2008, we were told that the blanket bank guarantee would be the cheapest bank rescue in the world, and that it would only last for two years, up to September 29th 2010.
Labour's financial spokesperson Joan Burton said there was a "creeping extension" of the bank guarantee scheme, "with taxpayers set to remain on the hook for upwards of €200bn worth of the banks’ liabilities for up to 5 years".
Ms Burton said Irish taxpayers will also be looking at upwards of €40bn through NAMA.
"Far from being a cost-free bank rescue, the blanket bank guarantee has come to be a financial millstone likely to weigh down Irish taxpayers for generations to come," she said.
Ms Burton added: "Indeed, in his recent report into the banking crisis, the Central Bank Governor, Patrick Honohan, has said that the blanket nature of the original bank guaranteeThe government has recently admitted that the €22bn pumped into Anglo Irish Bank is unlikely ever to be seen again. The €2.7bn and counting being pumped into Irish Nationwide is likely to suffer the same fate."
(DW/BMcC)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
31 July 2009
Developer Loses Court Bid To Appoint Examiner
Six companies controlled by the well known property developer Liam Carroll, will not be appointed an examiner, a court has decided.
Developer Loses Court Bid To Appoint Examiner
Six companies controlled by the well known property developer Liam Carroll, will not be appointed an examiner, a court has decided.
24 November 2010
Irish Credit Rating Downgraded By Agency
Ireland's difficulties seem to worsen by the hour as Standard & Poor's announce they are downgrading the State's international credit rating and placing its banks on "CreditWatch". The news comes just after another international ratings agency, Moody's, announced it would be slashing Ireland's credit rating, following the news of the Irish bailout.
Irish Credit Rating Downgraded By Agency
Ireland's difficulties seem to worsen by the hour as Standard & Poor's announce they are downgrading the State's international credit rating and placing its banks on "CreditWatch". The news comes just after another international ratings agency, Moody's, announced it would be slashing Ireland's credit rating, following the news of the Irish bailout.
15 December 2010
Brian Blocks Bank Bonus Bonanza
The Irish Republic's Finance Minister has blocked the payment of €40 million in bonuses by the state dependant AIB bank. Brian Lenihan wrote to Allied Irish Banks (AIB) saying that state support for AIB was now conditional on the non-payment of bonuses, no matter when they may have been earned.
Brian Blocks Bank Bonus Bonanza
The Irish Republic's Finance Minister has blocked the payment of €40 million in bonuses by the state dependant AIB bank. Brian Lenihan wrote to Allied Irish Banks (AIB) saying that state support for AIB was now conditional on the non-payment of bonuses, no matter when they may have been earned.
11 February 2011
Irish Banks 'Free-up' Lending
The Irish Government has welcomed the latest report from the Credit Review Office, which suggests that there has been an improvement in the lending arrangements between the country's two main banks and small businesses.
Irish Banks 'Free-up' Lending
The Irish Government has welcomed the latest report from the Credit Review Office, which suggests that there has been an improvement in the lending arrangements between the country's two main banks and small businesses.
07 July 2010
Lenihan Tough On NAMA Bankers' Errors
Banks have been less than clear on certain aspects of the running of the National Asset Management Agency (NAMA). Daíl Minister for Finance Brian Lenihan has now promised action against banks that provide "misleading information" but insisted that NAMA had done its job, and actually paid the banks less than had been envisaged.
Lenihan Tough On NAMA Bankers' Errors
Banks have been less than clear on certain aspects of the running of the National Asset Management Agency (NAMA). Daíl Minister for Finance Brian Lenihan has now promised action against banks that provide "misleading information" but insisted that NAMA had done its job, and actually paid the banks less than had been envisaged.
-
Northern Ireland WeatherThis Evening and Tonight:Rain clearing away east by early evening with some clear spells but a few showers likely to affect the North coast and other areas towards dawn, remaining breezy and mild overnight. Minimum temperature 9 °C.
