Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The very fact that an announcement was made to the effect that Chancellor Merkel and the German Government were instructing KfW to assist in financing SMEs in Ireland was one of the helpful factors in accessing the market at low interest rates last week, as it affected market sentiment at our exit from the bailout. There has already been a benefit.

What the tangible benefits will be is being worked out. Various models are being examined at official level. The matter has not come to the political level yet, but a paper is being prepared that will come to me shortly. Upon consideration, there must be a delivery vehicle in Ireland to get the money to the SMEs. The precedent is how EIB funds are delivered to SMEs. The EIB has lent €250 million to the main banks, AIB and Bank of Ireland, which decide in their normal lending processes who to lend on that money to. Perhaps something similar could be done. We will also introduce the NewERA legislation shortly, in which regard the strategic development fund and the NPRF may have a role. We are exploring different delivery possibilities.

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