Moore:Action On Bank Lending Required Urgently

12.00.00am GMT Fri 12th Feb 2010

Local MP Michael Moore has called on Ministers to force UK banks to meet their lending obligations to small and medium-sized businesses in the Borders.

Earlier this week, separate reports from the Public Affairs Committee at Westminster and the Scottish Government slammed RBS and Lloyds over their failure to meet lending targets introduced as a condition of the financial support they received from the taxpayer.

Mr Moore has pressed Ministers over the problems that lack of credit has caused for small businesses repeatedly since the financial crisis began. In the Borders, a number of local manufacturing firms have run into difficulties after they were unable to secure export finance on reasonable terms.

Mr Moore has now written to the Chancellor of the Exchequer, calling for action to be taken to force the banks to increase their lending to Borders firms.

Commenting, Mr Moore said:

'The reports from Westminster and Holyrood both make the same clear point: when it comes to credit firms in the Borders are paying more and more for less and less essential support.

'Ministers have been aware of these problems for well over a year now and action to resolve this issue is long overdue. Despite the promises of the banks, lack of credit has left many local firms facing severe financial difficulties.

'Steps must be taken urgently to ensure that the banks begin to meet their lending obligations to the taxpayer.'