Robert Troy
Question:24. Deputy Robert Troy asked the Minister for Jobs, Enterprise and Innovation the uptake to date of the credit guarantee scheme; and if he will make a statement on the matter. [3344/13]
View answerThursday, 24 January 2013
Questions (24)
Written answers
The Credit Guarantee Scheme went live on Wednesday 24th October. At this stage, the number of approved guarantees on Tuesday 22nd January is 10, which amounts to total credit facilities of €1,117,000 being provided to companies who otherwise could not avail of bank credit.
Bank of Ireland, AIB and Ulster Bank are participating in the Scheme. The scheme has been designed to address market failure affecting certain SMEs on the margins of commercial lending decisions, who, because of a lack of collateral or because of the sector they operate in, face difficulties in accessing traditional bank credit.
The Department and the Operator are in regular contact with the participating banks to improve take-up of the scheme; however, the Deputy will be aware that the Scheme will be demand-led. Potential borrowers are being advised to contact the participating banks directly. The Department will of course keep a close eye on developments in respect of the scheme as matters unfold.
In addition to the Credit Guarantee Scheme, the Microfinance Fund, the Innovation Fund Ireland (IFI), Development Capital Schemes and the specialist NPRF funds for the SME sector are helping Irish companies access credit in the current difficult environment.
All of these Schemes form key components in the suite of initiatives aimed at ensuring the flow of credit and other financing to SMEs to sustain employment and create new jobs.