AIB has said it is providing €500m for an initiative targeted at helping its small business customers.
The bank says the AIB Small Business Recovery Scheme, which will be available from 1 June, is part of its commitment to the Government to provide €3bn in new lending to small businesses this year and next year.
AIB says the scheme is designed to support 'viable' small businesses by restructuring firms' existing loans and providing additional working capital.
Minister for Enterprise Batt O'Keeffe has warned AIB that it must live up to its promise to make €500m available.
In a statement this afternoon, the Minister says the Government would accept nothing less.
Welcoming the announcement, Minister O'Keeffe says the pledge would have to be backed up by actual lending on the ground.
He says he received reports of many viable small businesses being 'stonewalled' when they sought credit to keep going or to expand.
Mr O'Keeffe says John Trethowen, the credit reviewer, would be monitoring the supply of credit and adjudicating in a new borrower appeals process.
He says he wants to see the banks, which had been rescued at enormous cost to the taxpayer, acting responsibly and in the best interests of small businesses.
