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Refusal of credit to SMEs increases to a crippling 55% - Morgan

1 March, 2010

Enterprises in this State are on life support and today’s revelations are putting the nail in the coffin of the misconception that banks have kept a steady flow of credit to the people of this State.

The writing has been on the wall for a long-time and Sinn Féin has been vocal in warning that in the absence of nationalisation, banks would keep tighter control on their lending practises. Banks are acting on commercial criteria and their main interest is looking after themselves, rather than assisting SMEs and economic recovery.

Since plans for NAMA were revealed and indeed since its legislation was passed the rate of refusal of credit to SMEs has actually increased from 42% to 55%. The people of this State, the enterprises and the entrepreneurs, were promised that recapitalisation and NAMA would inject a new life-force into the economy, they were told that saving the banks would benefit the whole economy, but today’s figures tell a different story.

Access to credit is vital for enterprises in this State and the Government should take moves to make sure that corporate greed is no longer at the heart of our banking system, by moving to nationalise the two main banks and create a Stat

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