This article is from page 28 of the 2008-10-07 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 28 JPG
CLARE finance professionals have given a guarded welcome to the Gov- ernment’s decision to become guar- antors for the banks.
Some are welcoming it as a means to make borrowing money easier while others hope it will reinstate confidence in the economy.
Mortgage adviser, Iggy Duffy of IFG Mortgages in Ennis described the decision as “one of the best re- sponses in the EU to the problem. It was vital to keep the economy
working and functioning. The conse- quences of letting a bank collapse are unthinkable. It will bring confidence in the economy and will make it a bit easier for ordinary people to access credit to buy a house or a car – the ordinary things”.
Duffy is also hopeful that an eased credit situation “will allow business- es to borrow and expand. That means more jobs and that’s good news for the economy.”
Financial advisor, Donal Carey be- lieves the real impact of the decision will be seen someway down the line.
“The banks won’t change their lend- ing criteria until they have seen the full implications of the legislation. But there is still money available if you meet their criteria. That criteria might be a bit tighter but that may not be any harm”’.
He feels that what is needed now is a confidence boost and hopefully the budget will bring that. It’s good the Government has stepped in to pro- tect the ordinary punters’ savings but this is the second time that the State has moved to save at least one of the banks and they should respond by
giving something back to their cus- tomers and taking a smaller profit’.
He says that a move which would help the building trade in the budget would be one that would benefit the wider economy.
‘A lot of people are employed in the building trade and anything which will put confidence back in the prop- erty market is good. There has been a fall in house prices but that is re- ally putting house prices where they ought to be. A couple on a reasonable income can now get a loan to buy a house in Ennis’, he said.