A novel strategy to beat the credit crunch from Bank of Scotland (Ireland) has been welcomed by the Irish Hoteliers Federation this week. Bank of Scotland (Ireland) is pledging €1 billion of lending to support needy consumers and business customers in 2009. In particular, the bank will focus on supporting mortgage customers in personal banking through Halifax and SMEs in business banking.

This will be done through the incremental allocation of specific schemes and funds aimed at those customers who are most in need during these difficult times. Last week they launched the first of these funds, aimed at first time buyers. They subsequently announced a €100 million fund for the hotels sector.

This fund is primarily aimed at the hotel industry that has been hard-hit by the slowdown in the Irish and global economies. The fund incorporates a seasonal loan facility that enables customers to take payment breaks of up to four months during the year or opt for interest only repayments.

The decision was welcomed by the IHF's Galway branch, Paul Gill, who said the move would give a much needed boost to the economy and relieve pressure being experienced on the ground by hotels, which require substantial seasonal banking facilities.

"Bank of Scotland, previously ICC Bank, has historically been a major provider of credit for the hospitality sector and has for many years been a dynamic banking force meeting the needs of hotels and guesthouses around the country. Its management continue to demonstrate an in-depth knowledge of the industry's requirements. We appreciate its continued commitment to Irish businesses and see this as a major step towards increasing the availability of bank credit facilities in Ireland," he said.

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