Michael Creed (Cork North West, Fine Gael) | Oireachtas source

Let it be clear that I am not encouraging farmers to borrow money. I am inviting them to avail of this option if it is appropriate. Whether the answer is to refinance existing loans will have to be looked at on a case-by-case basis. If there is a penalty for early payment of a loan, this may not be appropriate. If a farmer is making investments under TAMS next year, it might be appropriate. If a farmer has merchant credit, it might be more appropriate. Certainly, that may be so if a farmer has overdraft facilities at high interest rates. It is designed to be working capital. There will be a very simple credit application for an unsecured loan. A farmer will not have to put up the deeds to the farm to secure this loan. It is six-year finance at 2.95% and has an interest-only option for the first three years. It will be developed at the earliest possible date. My ambition is to have it in place in early January and the public call will go out from the SBCI shortly. What more information can I give? The interest rate is 2.95% and there is nothing like it in the market. It would be nice if the Deputy acknowledged the widespread welcome for this funding scheme. It is a new departure in terms of access to finance for the sector. It is available to the mushroom and tillage sectors.

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