Dáil Éireann Debate, Thursday - 22 June 2017
182. Deputy Kevin O'Keeffe asked the Minister for Agriculture, Food and the Marine the amount and the number of persons refused under the agriculture cashflow support loan scheme as administered by the SBCI in categories (details supplied). [29383/17]
Amharc ar fhreagraLast month I welcomed the release of preliminary information from the Strategic Banking Corporation of Ireland (SBCI) regarding the uptake of the Agriculture Cashflow Support Loan Scheme. The Scheme, which was developed by my Department in co-operation with SBCI, makes €150 million available to farmers at interest rates of 2.95%. Distributed and administered through AIB, Bank of Ireland and Ulster Bank, the Scheme provides farmers with a low cost, flexible source of working capital, allowing them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises.
The SBCI reported that €60.2m had been drawn down by farmers to the end of April. The average loan size is €32,000, with more than half the loans being advanced for terms of four years or more. By sector, 42% of loan value has been to dairy enterprises, 41% to beef and 8% to tillage, with other sectors such as sheep, pigs and horticulture also applying. The banks advise that all of the remaining €150m is committed and is in the process of being drawn down.
Normal bank lending criteria applies to the Scheme and the terms and conditions of each individual loan are agreed between the bank and the applicant according to the purpose of the loans and the circumstances of the farming enterprise. The banks do not report specific information on refusals but have stated that it is in line with their normal loan refusal rates. Applicants to the Scheme have a right of review with the Credit Review Office, which provides an independent review process for SMEs, sole traders and farm enterprises that have had requests for credit refused or had existing credit facilities reduced or withdrawn.
One of my priorities has been to address the impact of the change in the sterling exchange rate and lower commodity prices in some agriculture sectors. I am pleased at the very positive reaction by farmers to the Scheme, which has proved that significant demand exists for low cost flexible finance. I have met with the Chief Executives of the participating banks to discuss this and other access to finance issues relating to the agri-food sector. I have asked the banks to respond positively to the demand that has been demonstrated by reducing interest rates and providing more flexible terms for cash flow loans in the future.
