BUSINESS GROUP WANTS BANK POLICY SHIFT - The €7 billion recapitalisation of AIB and Bank of Ireland is needed to strengthen the banks so that they will have more money to lend to businesses.
But in a recession which most believe is set to get worse, what appetite is there among businesses for borrowing to invest?
Mark Fielding, chief executive of small business group ISME, said there needed to be a change of policy in the banking system, as small businesses were finding it difficult to get funding even for day-to-day activities.
He said that since November, there had also been a fall-off in the number of businesses looking for loans due to the downturn.
Mr Fielding said the UK had introduced a number of programmes to help small businesses, and he called for similar measures here.
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NEWS IN BRIEF AND CURRENCIES - Paper and packaging group Smurfit Kappa has reported pre-tax losses of €11.5m for last year, following a profit of €170m in 2007. The 2008 figure was affected by exceptional charges of almost €258m, linked to write-downs in the value of assets and restructuring costs. Revenue for the year fell by 3% to €7 billion and the company says its suspending dividend payments in 2009.
Tesco Personal Finance has decided to pull out of the personal loans market in Ireland. Tesco currently has 3,600 personal loans on its books with an average value of €9,500. The problem appears to be in response to rising numbers falling into arrears on their repayments.
On the currency markets, the euro is worth $1.2940 and 89.6p sterling.
