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Brexit Preparations

Dáil Éireann Debate, Tuesday - 15 October 2019

Tuesday, 15 October 2019

Questions (304)

Robert Troy


304. Deputy Robert Troy asked the Minister for Business, Enterprise and Innovation her views on a proposal by an organisation (details supplied) to mitigate a hard Brexit. [41663/19]

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Written answers (Question to Business)

My Department, through the SBCI, is working to increase the availability and use of the Credit Guarantee Scheme with the main banks. The SBCI is currently working with the banks to increase the availability and use of the Credit Guarantee Scheme in the context of Brexit. Specifically, the banks are promoting the CGS to underpin transit guarantees required for use of the UK Landbridge in a no-deal scenario. My Department has also raised the benefits for businesses of the banks using the CGS for invoice discounting, which is allowable under the current statutory framework.

Following a review by my Department, the Credit Guarantee Scheme was amended in 2017 by S.I. No. 70 of 2017. Changes made by that S.I. allowed for additional products or “finance agreements” to be offered under the Scheme. These include invoice discounting and factoring arrangements.  Participating lenders have not utilised this capacity for invoice discounting to date.  Invoice discounting is a niche credit segment which by its nature has a strong element of self-securitisation. Credit decisions for invoice discount facilities are heavily reliant on the quality of the trade debtors in question.