Saturday, August 23, 2008

Here comes the Bailout

STATE-BACKED loans for business are to be considered by the Government in September as efforts get underway to revive the flagging economy.

The Sunday Independent has learned that officials from the Department of Finance have been involved in talks, in recent weeks, with several of the country's major banks with a view to restoring liquidity in business lending.

It is understood that the introduction of State-guaranteed loans for businesses is among the measures under consideration as the Government looks for ways to revive economic activity in the wake of Ireland's property crash.

A source close to the negotiations stressed, however, that State-backed business loans -- should they be introduced -- would only be given where a sound business case was proposed by the prospective borrower.

"Effectively, the State, as well as the bank, will be lending money to business, so we have to be as sure as we can that we will get that money back. It belongs to the taxpayer," the source said.

The proposal is just one a range of measures currently being considered by Government officials as part of a stimulus package Taoiseach Brian Cowen is expected to bring to Cabinet in September for its consideration.

The Sindo

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