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ISME call for rate cut to be passed on

Thursday, July 05 15:01:36

ISME today welcomed the ECB decision to reduce interest rates by 0.25pc and demanded that the Government take the strongest action possible, including sanctions, on banks that refuse to pass on the reduction to their small business customers.

Commenting, ISME Chief Executive, Mark Fielding, outlined, "The decision by the ECB to announce an interest rate reduction will be seen as an opportunity by the greedy bailed-out bankers to maintain the benefit at the expense of their customers. The banks should be forced through stiff sanctions, including penalties, to do the right thing and pass the rate cut on to their hard pressed customers".

"ISME is extremely concerned at the Government's lack of real progress in sorting out the credit fiasco, especially for SMEs. They have delayed the Partial Credit Guarantee and Microfinance schemes, they have rolled over to Bank of Ireland's refusal to pass on previous rate cuts and have accepted the lame excuses and distorted lending statistics from the bailed out banks. Not alone are the banks refusing to lend to viable but vulnerable businesses but they are, by their greed, sabotaging the efforts to get the Economy moving again," he continued.

"If this Government is to have any credibility, it will confront the banks, in particular those who have steadfastly refused to pass on reductions in the past, and force them, through legislation if necessary, to comply. It is about time that the requirements of the taxpayer received preference over the greedy vested interests of the bailed-out bankers," concluded Fielding.