The European Investment Bank (EIB) announced on 3 October 2008 that it was increasing its support for Europe's small and medium-sized enterprises (SMEs) to help mitigate the effects of the current credit crisis. This is to take the form of a €30 billion facility to provide loans to SMEs through commercial banks.
I understand that the EIB has had discussions with a number of Irish banks about participation in the facility. Participation in the facility is, in the first instance, a commercial decision for individual financial institutions, who will be responsible for evaluating loan applications submitted by individual SMEs.
This is a very welcome initiative by the EIB and I would strongly urge Irish financial institutions to utilise the facility to the maximum extent possible with a view to making the additional funding involved available to SMEs as soon as possible.
More generally, my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment, Ms Mary Coughlan, TD, has primary responsibility for enterprise development, including supports for SMEs.
With regard to the National Treasury Management Agency, the primary role of the Agency is to ensure that sufficient funding is available at all times to meet the day-to-day requirements of the Exchequer. I would not envisage extending the role of the Agency to providing finance for small and medium businesses as this role is more appropriate to the commercial lending institutions.
