IHF WELCOMES GOVERNMENT COMMITMENT TO INCREASE CREDIT SUPPLY

31 March 2010

The Irish Hotels Federation (IHF) today welcomed the Minister for Finance’s strong commitment to provide increased liquidity and access to credit to SMEs. Mr John Power, Chief Executive, IHF states that the measures announced today will stabilise the Irish banking sector and ensure financial institutions play a major role in the country’s economic recovery.  

Mr Power states, “The Government’s insistence that banks facilitate economy by supplying credit to viable businesses is a significant boost to small and medium sized enterprises. The decision to compel AIB and Bank of Ireland to provide at least €3 billion each in new or increased credit facilities will go a long way in alleviating the major difficulties being experienced, particularly by small and medium enterprises.”

The IHF acknowledges the stipulation that additional credit facilities must include funds for working capital for businesses and states that business within the hotel and guesthouse sector should be in a position to avail of a portion of these funds, particularly for the 2010 and 2011 winter periods.

The IHF welcomes the Minister’s putting in place of a credit review system under the direction of Mr John Trethowan. The IHF states that it has met with Mr Trethowan and believes that he will make a major impact in ensuring that applications for bank credit by viable businesses are successful.

ENDS

FOR INFORMATION:

Siobhan Molloy / Eoin Quinn              Tel: 01 6760168

Weber Shandwick                              Mobile: 086 817 5066 / 087 233 2191