Dáil Éireann Debate, Wednesday - 12 December 2018
72. Deputy Richard Boyd Barrett asked the Minister for Finance the reason the State has secondary security over moneys loaned by the Strategic Banking Corporation of Ireland to a company (details supplied) while the minority lender has a stronger fixed and floating charge; and if he will make a statement on the matter. [52387/18]
Amharc ar fhreagraThe role of the Strategic Banking Corporation of Ireland, the SBCI, is to provide effective financial supports to Irish SMEs and encourage competition and innovation in the SME finance market while also ensuring the efficient and effective use of available EU resources. The SBCI, as the Deputy is aware, does not provide financing directly to small businesses using an on-lending model. The SBCI operates through partner finance providers, known as on-lenders. The SBCI works with both bank and non-bank finance providers.
I am advised by the SBCI that it enters into facilities with its on-lenders on a commercial and market neutral basis. The SBCI will consider applications from all finance providers to be an SBCI on-lender on the basis of general criteria. The SBCI consequently avoids commenting on specific on-lenders and cannot reveal commercially sensitive information regarding their individual facilities. The same approach applies to prospective on-lenders. However, each on-lender is different in terms of size structure, financial strength, parental or group support etc.
The Deputy may rest assured that SBCI carries out due diligence and a thorough assessment of each prospective on-lender to ensure that the appropriate legal and corporate structure is put in place to ensure that the taxpayers’ position is protected. I am informed this can include, where necessary, coming to arrangements with that on-lender’s other creditors in relation to security over assets.
