Banks need to pass on interest rate reduction to business - Tóibín
Responding to the news this afternoon that the European Central Bank as reduced its interest rate, Sinn Féin’s spokesperson on enterprise, jobs and innovation, Peadar Tóibín TD said:
“The ECB reduced its interest rate to promote investment and growth, however this rate reduction will not be passed on, by banks, to our struggling enterprises.
“Recently Forfás found that the cost of borrowing for SMEs in this state was ten to 15 per cent higher than the EU average
“Increasingly banks have made it more difficult for business, with increases to cash handling and other charges.
“All the while the government has sat on its hands and continued to subsidise the banking system. Where the government has acted to provide credit to enterprises, it is at a rate even higher than that offer by the banks.
“The government needs to support enterprises and use its position within the banks to ensure that adequate and affordable credit is available. There is an immediate need for the banks to pass on interest rate reductions to our business sector.”