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ISME Welcomes Plans By German Bank To Offer Loans To Irish SMEs

Published on Nov 19 2013 12:20 PM in Retail

ISME Welcomes Plans By German Bank To Offer Loans To Irish SMEs

A plan to give access to low-rate funding through the German development bank KFW has been welcomed by the Irish Small and Medium Enterprises Association. (ISME), however the group recommended that the funding be provided through the "NTMA or an alternative strategic development fund, as our bailed-out banks cannot be trusted to manage and pass the interest rate savings on to businesses".

The plan will benefit Irish small and medium businesses that are finding it difficult to access credit. ISME called for funding to be provided through the National Treasury Management Agency or an alternative strategic development fund, rather than the banks.

“It is clear from the dubious record of Irish banks that they can never be trusted to pass cheaper lending rates on,” said ISME chief executive Mark Fielding. “They would undoubtedly exploit this opportunity to pile on exorbitant fees and charges.

“Access to credit is an issue that has been plaguing Irish SMEs since the beginning of the recession. The latest ISME Quarterly Bank Watch Survey shows that bank credit refusal is now at 57%. Overdrafts had also been reduced for 31% of respondents during Q3'13.”

© 2013 - Checkout Magazine by Stephen Wynne-Jones

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