Dáil Éireann Debate, Tuesday - 31 January 2023
155. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment if he will specify the breakdown of the capital and current budget allocations of €5 million for the new credit guarantee scheme in the budget 2023 expenditure report, in tabular form. [4476/23]
View answerThe Ukraine Credit Guarantee Scheme will provide up to €1.2 billion in lending facilities to businesses impacted by increasing costs arising from Russia’s aggression against Ukraine. Primary and secondary legislation was delivered at a rapid pace to facilitate this important assistance to businesses at a time they have only just begun their path to recovery in the wake of Covid.
The scheme has been developed with the assistance of the Strategic Banking Corporation of Ireland, who will act as the operator. Loans under the scheme will be provided by individual financial institutions. Loans will be available, under the scheme, to SMEs, farmers, fishers and small mid-caps until the end of 2024. The loans will have reduced interest rates, have no security requirements for loans of up to €250,000 with a maximum loan amount of €1 million and a maximum term of 6 years. Bank of Ireland is due to launch its loans under the scheme on the 30th of January with more lenders to follow subsequent to the open call which closed on 27 January.
€5 million has been allocated to the budget line entitled "Temporary Loan Guarantee Scheme" for 2023. This sum is a capital allocation. It includes the allocation for the Ukraine Credit Guarantee Scheme, the Covid-19 Credit Guarantee Scheme and the original Credit Guarantee Scheme. While the Ukraine scheme is the only scheme currently open to new loans, there are costs associated with each scheme. Claims in respect of loan defaults in 2023 will primarily be realised on the Covid-19 scheme, which saw €708 million in loans to over 9,850 businesses in just 21 months of operation.
|
Scheme |
2023 Capital Allocation |
|
Credit Guarantee Scheme |
€212,000 |
|
Covid-19 Credit Guarantee Scheme |
€2,963,000 |
|
Ukraine Credit Guarantee Scheme |
€1,825,000 |
