Dáil Éireann Debate, Tuesday - 3 March 2015
182. Deputy Dara Calleary asked the Minister for Finance regarding the State-backed Strategic Banking Corporation of Ireland, the percentage of lending that will be stock lending; and if he will make a statement on the matter. [9274/15]
View answerThe Strategic Banking Corporation of Ireland (SBCI) launched its initial product programme on 19 February 2015. The SBCI has secured funding of €800m to fund its first loans that will be lower cost and longer term for both working capital and investment. The minimum duration of loans is two years and the maximum duration ten years. The SBCI is seeking to support flexible loans that better suit the needs of Irish business and will develop and adapt its offerings over time to achieve this.
The Government's aim for the SBCI is to change the range and profile of SME finance providers in Ireland. With this in mind, the SBCI has engaged with other banks as well as non-bank providers of finance and potential new entrants to the market such as providers of invoice discounting, leasing and asset based finance to broaden the funding options available to the SME sector through the availability of SBCI monies.
The SBCI will provide working capital loans through its lending partners. Borrowers can use the SBCI's working capital product to finance their business, including stock lending such as buying finished goods for resale or buying raw materials for manufacturing. There is no target percentage for stock lending.
The SBCI is flexible and has the ability to adapt and develop its product set to meet the needs of the market as they are identified. New initiatives in the pipeline will deliver new products, new market participants and support for the growth of existing non-bank credit providers all driving competition in the market.
