Danske Bank SME loan sales
Michael McGrath warns that 4,000 small businesses may have their Danske Bank loans sold to an unregulated foreign fund before protective legislation is enacted. The Taoiseach says the legislation is being drafted and the issue is a Government priority.
I raise an issue reported in The Sunday Business Post last weekend that 4,000 SME customers of Danske Bank face the sale of their loans to a foreign-owned vulture fund. It is a similar issue to the one we have previously raised in relation to mortgage holders. The relevant legislation is the sale of loan books to unregulated third parties Bill. If this happens to businesses before the legislation is passed, they will be left vulnerable and exposed. If businesses have missed any payment whatsoever on loans, all they will have to rely on is their loan agreements, which are heavily stacked in favour of the lender. Viable businesses could be shut down and jobs lost. The legislation is urgent. We will happily support the passage of the Bill and the provision of time to do so. The Government has promised to fast-track it. Can the Taoiseach assure the House that the Bill will be published urgently and introduced to the House?
Comment on this
The Bill is being drafted at the moment. I am aware of the considerable anxiety and concern expressed by small businesses, as is the Minister for Finance. It is a major priority of the Government and I will provide the Deputy with an update as to where it is moving. It is an issue of considerable public concern.