Dáil Éireann Debate, Thursday - 26 January 2017
181. Deputy Eamon Scanlon asked the Minister for Agriculture, Food and the Marine when the new low cost flexible loans will be available to farmers; the banks that will be administrating the loans; and if he will make a statement on the matter. [3591/17]
Amharc ar fhreagraOne of my priorities has been to address the impact on farmers of the sustained period of lower commodity prices, which has caused cash flow difficulties for farmers in several sectors. The Agriculture Cashflow Support Loan Scheme was developed by my Department in co-operation with the Strategic Banking Corporation of Ireland (SBCI). It will provide farmers with a low cost, flexible source of working capital and will allow them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises.
This innovative loan Scheme will make €150 million available to farmers throughout Ireland at low-cost interest rates of 2.95%. This is supported by €25 million being provided by my Department, including €11 million in EU exceptional adjustment aid. There were a number of applications submitted in response to the SBCI’s "Open Call" for financial institutions to participate in the Scheme, which were the subject of a formal approval process. The SBCI is aiming to bring the loans to market by the end of January and I hope to make an announcement in this regard shortly, including the details of participating financial institutions.
