Call For Banks To Address Credit Issues

RGDATA has joined with other lobby groups to send a clear message to the Irish Government that the current basis for negotiations between banks and small businesses with credit difficulties is not working.

In a joint statement issued at a briefing in Dublin by RGDATA, The Irish Farmers’ Association, the Vintners Federation of Ireland, Irish Property Owners Association, the group said: “While the Irish economy is beginning to recover from the worst recession experienced in a generation, a significant number of small, family-owned enterprises are still facing financial difficulties.

“There remains a pressing need to ensure that these difficulties are resolved in order to maximise the numbers employed in small enterprises across Ireland. Regrettably, it has become clear to the bodies representing family businesses in key sectors that the action of some of the banks is actively damaging the recovery for some businesses.”

 The Group’s key demands are:

• Banks must seek resolutions that preserve the viability of the underlying business and maintain employment;

• For all negotiations, a clearly identified point of contact in the bank must be agreed, who has responsibility for delivering a sustainable solution acceptable to both parties;

• A dispute resolution/mediation service must be employed where banks and borrowers cannot reach agreement;

• Agreements reached must be full and final.