Dáil Éireann Debate, Tuesday - 13 December 2022
121. Deputy Christopher O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment if the Ukraine credit guarantee scheme is now open for applications; and if he will make a statement on the matter. [62123/22]
View answerThe Ukraine Credit Guarantee Scheme will release up to €1.2 billion in lending to assist the liquidity needs of SMEs, farmers, fishers and small mid-caps. Increased energy costs are driving increased costs in every area of business operations. Viable businesses need access to cashflow funding to ensure they can continue to operate, pay their employees and pay their suppliers. This type of scheme provides access to low-cost loans to meet these liquidity needs. Experience on the very similar and successful Covid-19 CGS has seen €705 million in lending to over 9,800 businesses, helping to maintain 81,000 jobs.
The relevant amendments to the Credit Guarantee Act have been enacted this December, with the legal and operational elements being finalised to allow for deployment of the Scheme this winter. An open call to finance providers has begun to ensure competition in the market and a variety of loan types available to businesses.
To ensure that businesses can avail of loans to meet their liquidity needs this winter, a pre-allocation has been made available to the two pillar banks which is well advanced. This will significantly increase the pace of the deployment of the scheme and the availability of loans in the market.
Loans under this scheme will be available until the 31st of December 2024, giving certainty to SMEs, farmers and fishers that funding will be available to them through these extraordinary economic times.
