With less collateral available than required from what ISME termed the “now over-cautious rescued banks” the announcement of this scheme by the Minister for Jobs, Enterprise and Innovation will ensure that SMEs can successfully apply for bank credit where recently the banks were unable to issue loans “due to their lack of expertise and risk-averse policies”.
In welcoming the launch of the Scheme, ISME Chief Executive Mark Fielding said, “While this initiative will not be the ‘silver bullet’ for all credit-starved SMEs, it should get marginal cases across the line. We hope that this Government intervention in the broken banking system will initially assist in retaining and ultimately increase employment in the sector.
“Many of our ISME members have had to postpone investment decisions due to the banking market failure and this scheme will be a help to some vulnerable but viable SMEs and allow them to survive, consolidate and in time, expand, with the positive result of increased employment.”
The Association has called on the Government to:
- · Ensure ‘fair play’ by insisting on tight control and monitoring of the scheme in the hands of the rescued banks which in the past have shown a tendency to bend the rules to their own advantage
- · Advertise and promote the scheme to SMEs
- · Demand that banks educate their staff in the application of the scheme.
In conclusion Mark Fielding demanded that the bailed-out banks step up to the plate quickly on the use of this scheme as they have delayed its implementation with “Jesuitical legalese and their usual over-the-top bureaucracy”.