Dáil Éireann Debate, Tuesday - 14 July 2015
353. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the value of drawdowns issued under the credit guarantee scheme on 31 December 2014 and on 30 June 2015; the value of approvals on the same dates; if he will provide, by county, a breakdown of each drawdown and approval; the reason for the delay in the legislation to review the scheme; and if he will make a statement on the matter. [28563/15]
View answerMy Department publishes quarterly progress reports on the Department’s website www.enterprise.gov.ie in respect of the Credit Guarantee Scheme. The progress report detailing the analysis and performance by region up to the quarterly period ending 31st March 2015 is available on the Department’s website. I intend to publish the report for the period 30th June 2015, once this report has been finalised.
As a result of the review of the Credit Guarantee Scheme a new Credit Guarantee Scheme 2015 has now been made in accordance with the terms of the Credit Guarantee Act 2012 which will allow guarantees for refinancing loans where an SME's bank has exited or is exiting the Irish SME market. This new Scheme will also increase the maximum length of guarantees under the Credit Guarantee Scheme from 3 years to 7 years.
To bring this Scheme into operation there are a number of steps to conclude with the participating banks including certification, approval and legal agreements. These processes are currently being completed and it is hoped that the new Scheme will be operational in the very near future.
In addition, my Department is currently working on amending the primary legislation and once this is completed I will introduce a new Credit Guarantee Scheme, which will include the following improvements: a wider range of financial products to be covered not just traditional credit products, an increase in the level of guarantee on individual loans from 75% to the maximum permissible under State Aid rules of 80%, an increase in the portfolio cap and the removal of the annual portfolio cap. The technical and legal amendments to the legislation are complex and my Department is working very closely with the Parliamentary Draftsman and the Office of the Attorney General to address these complexities and facilitate the introduction of the revised legislation at an early date.
