BUDGET RESCUE PLAN MUST BE DELIVERED BY THOSE ON THE GROUND - ÖPIK (Montgomeryshire Liberal Democrats)

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Montgomeryshire Liberal Democrats <montlibdems@gmail.com>

BUDGET RESCUE PLAN MUST BE DELIVERED BY THOSE ON THE GROUND - ÖPIK

April 22, 2009 4:08 PM

Lembit Öpik, Liberal Democrat MP for Montgomeryshire, pressed the Chancellor today, on the announcement of his annual budget, to ensure that banks do not put the squeeze on their existing customers to shore up their capital reserves.

Commenting on the debate, he said:

"I have spoken to a number of local business people in Montgomeryshire who, despite the Government's good intentions, are facing increasingly hostile banks when trying to retain their existing overdrafts. Indeed, despite assurances to the contrary, banks are actually reducing overdraft facilities, putting an unsustainable strain on otherwise viable businesses. I'm hoping the Treasury Select Committee will investigate this serious problem with a view to finding ways to ease the squeeze, especially on smaller firms.

"This is the reality of the banking crisis. The Government must ensure that their well meaning policies to increase credit available to small and medium businesses, while also shoring up their capital reserves, does not backfire and create banks keen to extend olive branches to new customers, but who continue to take advantage of their existing customers by reducing their overdrafts."

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