Today's figures from the Central Bank showing Ireland credit rejection figures for SMEs is second only to Greece comes as no surprise and the Government should force the bailed out bank to make full disclosure, according to ISME.
The research from the central bank once more confirms what the Association has been stating for years, that access to bank finance is being denied to viable but vulnerable businesses, it said.
According to ISME Chief Executive, Mark Fielding, "While Irish banks have been recapitalised with enormous fiscal injections, the truth of the matter is the bailed-out banks are not fixed, rescued bankers continue to utter untruths, banking reform is delayed and banking policy is turning good business bad. These same Irish banks refuse to lend to viable small and medium enterprises".
"This present administration must stop their current love affair with the banks, demand changes in bank operations and insist that they partake in a positive way in the recovery. It may suit the administration to believe the fiction created by bankers' spin that the system is functioning; otherwise why sink billions of taxpayers' money into keeping them afloat. The reality is that banks are performing at a very limited capacity in ensuring the payments system and ATMs are functioning, however when it comes to assisting the SME sector to grow, the bailed-out banks are continuing to refuse SMEs access to finance, thereby hindering the economy."
"The Government, the owners, must take a more hands on approach while the system is broken, insist on opening credit lines, servicing SME customers and play their part in economic recovery. Otherwise business will stagnate, employment will reduce and the economy will suffer for a generation," Fielding stated.