Dáil Éireann Debate, Tuesday - 18 November 2014
212. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views on allowing loans drawn down under the Microfinance Ireland scheme to be repaid over longer periods and with initial interest holidays to improve the flexibility of the scheme; and if he will make a statement on the matter. [43847/14]
Amharc ar fhreagraMicrofinance Ireland (MFI) is a private company with a Board of Directors who have ultimate responsibility for the performance and governance of MFI. The issues raised by the Deputy are matters for the Board to consider and implement as they see fit. The Microenterprise Loan Fund Scheme (SI 343 of 2012) allows for moratoriums and rescheduling of loans, and does not set a limit on repayment duration. These matters are dealt with in the credit policy, which is agreed by the MFI Board.
I have commenced a review of the operation of the Microfinance Loan Act. The purpose of the review is to enhance the uptake and impact of the fund
My officials have been actively engaged in discussions with stakeholders, representative organisations, the various banks, the credit union movement, Microfinance Ireland and the Local Enterprise Office on the review.
A range of topics have been raised during these discussions which included, inter alia, removal of the requirement of a rejection from the bank, an automatic referral system for rejected bank applications, loan terms, loan limits and improved promotional and marketing opportunities.
My officials are currently holding their final meetings as part of the review process, and a report will be finalised as expeditiously as possible.
