PRESS RELEASE
Immediate : 28TH Feb 2010
CREDIT SQUEEZE WILL NEED MORE THAN LOAN GUARANTEE TO ALLEVIATE; State Irish Exporters Association (IEA).
The IEA in responding to the Tanaiste Mary Coughlan‘s comments on a state guarantee loans scheme, stated;
The credit squeeze and its impact on small to medium sized business, particularly those with export and import activity, have been steadily rising over the past 12 months. If the Government is serious about assisting the sector, then a wider brief needs to be taken in arriving at a solution, which should involve both loan guarantee and credit insurance guarantee. Both are locked together, both affect the credit rating of business and the ability of the banks to provide competitive loans.
John Whelan, chief executive of the IEA stated;
“When you consider the current credit crisis, increasingly businesses in key competitor countries are being aggressive supported by use of credit support, and loan guarantee as well as export promotion tools by our competitors’ governments. It is now very clear that further Irish Government support is urgently needed to prevent major job losses arising out of the growing credit gap, as companies scramble for trade finance to keep going. ‘’
He went on to say;
‘’There are approximately 3800 small businesses exporting from Ireland , giving direct employment to 147,000 people , all of these are being impacted by the cost and availability of trade finance , which involves loans, credit insurance, and currency hedging costs. Urgent real action by Government , not rabbit out of the hat announcements by the Tanaiste is what will help small exporters continue to trade and pull out of the recessionary credit trap they find themselves in. ‘’
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