Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

My understanding of the SBCI loans, was that it was a €25 million loan per annum that was scheduled in such a way that it would recur every year for up to six years. Obviously there was some European money put into the scheme as well as State funding. It was leveraged by taking in additional funds from the SBCI. The overall objective is that loans would be available every year balanced out over the six years.

The feedback that I am getting is similar to what other Deputies have been getting, is that in many cases the banks are limiting the loans to one year or two year term loans. Therefore what happens to the value of the overall fund in years two, three, four and five? Will it not be drawn down in those instances? If the full amount of the fund is lent in year one, once one gets to year two, those who received a one year loan are out of the system. There should be some unspent funds that could be budgeted into year two. Similarly in years three, four, five and six, is the money in the fund not being leveraged and drawn down? Is the money not in the system as a result of the fact that short-term loans were given at the outset? Is the full scope of the loan being drawn down in later years? For example if €3 million or €4 million is lent out for two years, once it comes to year three, will the banks be able to lend money to somebody else for another four years? I am not clear on how the system works.