Banks 'punish small firms'

SMALL businesses hit by the credit crunch are suffering even more at the hands of the banks, Livingston SNP MSP Angela Constance told the Scottish Parliament.

She said local firms were being penalised by the withdrawal of credit facilities, reduced overdrafts and increased interest rates on loan repayments. "This is all the more harsh when all the businesses are requesting is flexibility, not a free lunch," she said.

Enterprise Minister Jim Mather

said: "We are looking for an early return to reasonable rates and terms and conditions."