NAMA 'will not result in increased lending'
The majority of SME owner-managers do not believe that NAMA will result in increased lending to businesses, according to a survey by ISME, the Irish Small and Medium Enterprises Association.
ISME said its survey indicated that just one in 10 SMEs believe that NAMA will make a positive difference to bank lending.
"Businesses do not believe that NAMA and recapitalisation will act as a means of opening up business credit lines, contrary to the Government’s view," said ISME Chief Executive Mark Fielding.
ISME said 80% of companies claim that banks are making it more difficult to access credit, with 55% of businesses recently being refused loans.
"This is in spite of the banks commitments, as part of the NAMA process, to increase lending capacity to SMEs by 10% over 2008 levels," Mr Fielding said.
"In fact the opposite has occurred."
Mr Fielding claimed that rather than making more money available for lending, banks would use NAMA funds to shore up their balance sheets and "look after number one".
“The Government must seek a commitment from the banks who benefit through NAMA and Government recapitalisation, to immediately increase the level of lending to their viable SME customers," he said.
"Any banks that fail to comply should automatically be refused further state assistance in their recapitalisation programme."
