Published on
Credit Review Office limit increases to €500,000
Finance Minister Michael Noonan signed a Statutory Instrument on 6th July, which increased the limit for loan applications that can be reviewed by the Credit Review Office from €250,000 to €500,000.
The Credit Review Office provides an independent review process for credit applications by SME’s, sole traders and farmers which have been refused credit by the NAMA participating banks, AIB and Bank of Ireland.
The Minister said...
Up to now the numbers of applications for review going to the Credit Review Office has been surprisingly low considering the volume of complaints about difficulties that SMEs are facing in accessing credit. This increase in the threshold will bring more refusals within the scope of the Credit Review Office and should encourage more firms to seek reviews. It also implements a recommendation made by the Credit Reviewer, John Trethowan in his most recent quarterly report.
The Minister set out that the increase comes into operation on 9 July. Minister Noonan strongly advised SMEs who have been refused credit to seek an internal review of the refusal and then to go to the Credit Review Office.
The Credit Review Office has already disputed the banks’ decisions in cases totalling over €1.75 million and the granting of this credit has resulted in the protection of 210 fulltime and 13 part time jobs. This shows the effectiveness of the review process and the increase in the thresholds should protect even more jobs.