Dáil Éireann Debate, Tuesday - 23 May 2017
164. Deputy Niall Collins asked the Minister for Finance if his Department has submitted proposals to the EIB or the European Commission to deploy financial instruments that would provide loan facilities for SMEs. [24073/17]
View answerThe Strategic Banking Corporation of Ireland is Ireland’s National Promotional Institution; its strategic mission is to deliver effective financial supports to Irish SMEs that address failures in the Irish credit market, while driving competition and innovation and ensuring the efficient use of available EU resources. The European Investment Bank (EIB Group) was one of the SBCI’s initial funders and there are two funding agreements in place between the EIB and the SBCI for a total of €400 million. The SBCI now has a funding capacity of over €1 billion to support Irish SMEs investing in and growing their businesses.
As announced in Budget 2017, the Agriculture Cashflow Support Loan Scheme was launched by the Department of Agriculture, Food and the Marine in conjunction with the SBCI in February 2017. It was funded by €11 million of EU exceptional adjustment aid, funding from the Department of Agriculture Food and the Marine and was supported by SBCI capital as well as a €100 million COSME Counter Guarantee Facility from the EIF. The Agriculture Cashflow Support Loan Scheme was the first SBCI risk-sharing product and was intended as a proof of concept. Its success will allow the SBCI to pursue further risk sharing schemes and continue its partnership with the EIF.
The SBCI is currently working to diversify its business model and engage in more risk sharing activity. This approach will allow the SBCI to develop new and innovative products and address market requirements. Risk sharing by the SBCI will be carried out both using European Financial Instruments as well as the Credit Guarantee Scheme. The SBCI is currently in communication with the EIB regarding the use of structural funds along with EU Financial Instruments though the European Fund for Strategic Investments (EFSI). The SBCI is also currently engaging with various Government Departments and agencies to explore and develop further products that optimise funding available, from both European and domestic sources, to benefit Irish SMEs.
