Restricted bank lending prompts Isle of Man talks

Government officials are to embark on a series of bank talks in the Isle of Man to try to boost bank lending to small and medium-sized business.

It is thought some enterprises on the island have seen overdraft reductions.

In the March sitting of Tynwald it was revealed that local manufacturers have been worst hit.

Economic Development Minister, John Shimmin, said: "This position is not dissimilar to that which pertains in the UK and much of the European Union."

The talks are part of a scheme which is also attempting to encourage more business on to the Isle of Man.

"We are monitoring the potential emergence of a 'Moneylender' on the Isle of Man, who we understand has appetite to fill some of the perceived gaps in the market," continued Mr Shimmin.

In the United Kingdom the government recently introduced a £20bn scheme aimed at boosting bank lending to small and medium-sized enterprises (SMEs).

The National Loan Guarantee Scheme is open to businesses with an annual turnover of up to £50m.