The leader of the Labour Party has said Irish banks are reacting to the international credit crunch by throttling businesses looking for loans.
In the Dáil this morning, Eamon Gilmore called on Taoiseach Brian Cowen to call a meeting with financial institutions to urge them to continue to provide finance to firms.
As the fall-out from yesterday's pessimistic ESRI report dominated Leader's Questions, Mr Cowen said next week's half-yearly Exchequer figures would help the Government hatch a rescue plan for the economy.
Mr Gilmore said Irish banks should not be able to 'hide behind' the international credit squeeze by refusing credit to businesses.
Mr Gilmore said Irish banks should not be able to "hide behind" the international credit squeeze by refusing credit to businesses.
"The four major banking groups made most of their profits here in this country in good times and I believe they have a responsibility now to help get the economy through the more difficult times that it is in," he told the Dáil.
"They are clearly not going to do that voluntarily."
He called on the Taoiseach to summon the banks into Government Buildings to urge them to take a long-term view in relation to the Irish economy.
"You must encourage them not to be squeezing the life out of businesses," Mr Gilmore added.
"At this moment banks are really throttling individual businesses. They are telling them to clear off because they are not making money available to them." He said entrepreneurs were unable to get access to start-up capital to create jobs and boost the economy.
Mr Cowen said there was always a danger of knee-jerk reactions in every sector to the downturn in the economy. He said that banks had a responsibility to their shareholders but that they Should not be afraid to take risks.
"I think it is important that banks continue to provide prudent risk to business and that the performance of Irish businesses during the good times should stand as a strong criterion for continued support," Mr Cowen said.
The Taoiseach said a lack of trust had emerged in the banking sector internationally because of volatility in the lending regime in the US.
But he added: "The Central Bank believes that the Irish banking sector is in a healthy financial state."
Referring to next week's publication of the half-yearly Exchequer figures, he added: "We will take whatever steps are necessary on the basis of up-to-date data next week and proceed from there."