Setting up a ‘toxic bank’, would clear bad debts and allow “much needed capital to begin to flow into the economy” according to Independent Galway West TD Noel Grealish.
Dep Grealish is calling for the establishment of a ‘toxic bank’ to clear bad debts from the major banks, as part of a “multi pronged” approach to getting the economy back on track again.
“I am inundated on a weekly basis with people contacting me telling me that they are unable to get badly needed credit facilities from their bank,” said Dep Grealish. “Many require a relatively small facility in order to keep their businesses operational, yet they cannot get it.”
Dep Grealish believes that if the Government set up a “toxic bank” it would allow “much needed capital to begin to flow into the economy”. It would allow for ‘toxic debt’ to be “cleaned out of the balance sheets of the banks and transferred into a ‘toxic bank’”. He argues that this would “clear the way” for the commercial banks to recommence normal bank lending.
“Companies need credit to survive and indeed flourish,” he said. “By setting up a ‘toxic bank’, the Government would be assisting greatly by helping to reignite the spark of entrepreneurship that is so necessary to safeguard the future economic stability of our country