56% of banks’ decisions overturned by Credit Review Office – Coghlan

Fine Gael Kerry Senator and Seanad Chief Whip, Paul Coghlan, has today (Wednesday) encouraged all SME owners and farmers to ask questions if a bank refuses credit. Senator Coghlan was speaking after it was revealed that the Credit Review Office (CRO) is overturning 56% of the banks’ decisions to refuse credit.

“The Credit Review Office is overturning 56% of the banks’ decisions to refuse credit to SMEs and farmers. This has meant that €30m in credit has been released and over 2,000 jobs have been protected or created. However, it is noteworthy that only 3% of those refused credit from their banks challenge the decisions, the remaining 97% of applicants walk away disappointed and empty handed.

“While many businesses have taken advantage of the function of the CRO, there are still too many who do not have access to credit and who are unaware of the assistance the CRO can provide.

“SMEs need to challenge the banks’ decisions, as on many occasions the bank themselves reverse their decision and if they do not, the CRO is there.

“This Government has been dedicated to ensuring credit is made available to SMEs and farmers. Last year the Minister for Finance, Michael Noonan TD increased in the limit for loan applications that can be reviewed by the CRO from €500,000 to €3m. This increase allowed for requests from a broader range of SMEs and it assisted borrowers banking with non-trading banks.

“ Over €800 million in additional credit has been made available to Irish SMEs through the new Strategic Banking Corporation of Ireland (SBCI) and I would appeal to all farmers and SME owners in need of credit to approach their banks to gain access to these funds. If they are refused, they should ask why.

“Minister Noonan announced in Budget 2015 that Permanent TSB will shortly participate in the CRO process and Ulster Bank is considering making a similar commitment.

“ It is extremely important that farmers and business owners are aware of the supports available and especially vital that they challenge their bank as to why they have been refused access to credit.”