Paul McGrath
Question:51 Mr. McGrath asked the Minister for Agriculture and Food if he will recommend to the Government that a low interest Euro loan scheme be introduced to assist farmers in financial difficulty.
Written Answers. - Euro Loan Scheme.
Past experience with schemes of the kind referred to by the Deputy has been that in addition to their high cost it is particularly difficult to focus them on those in need, especially in view of the requirement that borrowers must meet the normal criteria of credit-worthiness. Moreover, the benefit of a Eurocurrency scheme depends on the existence of a substantial difference between domestic interest rates and those of the foreign currency borrowed. The current difference is quite small, at between 1 per cent and 2 per cent. There are no funds available to me to use for the purpose of subsidising such loans, even if it were possible to frame such action to be in conformity with Community rules of competition.