The Government recognises that SMEs are the lifeblood of the economy and play a vital role in the continuing recovery of employment growth in our country. Government policy since 2011 has focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources.
While I note Professor Kelly's recent statements on SMEs, it does not change the Government's assessment that SME financing is a priority concern and one which is a clear focus of efforts to restore the economy to health.
Progress on the initiative with KfW is being made as quickly as possible with dedicated project teams in place on both sides in order to expedite the discussions. My officials have exchanged working papers with KfW and the German Ministry of Finance over recent weeks and there have been meetings on this matter in Berlin, Frankfurt and Dublin as well as numerous teleconferences, most recently in the last week.
The aim of this project is to find ways to reinforce Ireland's economic recovery by improving funding mechanisms for the real economy. The intention is to ensure that the funding provided through this initiative will provide viable SMEs in Ireland with access to a long-term and appropriately-priced supply of finance in a manner that supports productive investment, encourages growth and increases employment in the SME sector, including where the market appetite remains constrained. In this regard, the KfW project would have the dual and complementary roles of providing funding to SMEs in general and also targeting investment in a manner that supports key strategic sectors and alleviates financing constraints.
