Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

The supply and demand for credit have improved significantly since the height of the crisis. However, the cost of credit, while falling, continues to remain relatively high. It is vital that it be reduced to align Ireland with rates in competitor countries. The divergence between Irish and eurozone interest rates for enterprise is particularly noticeable in the case of loans up to €250,000. The interest rate for new business loans in Ireland was double the eurozone average rate throughout 2017. On 28 March 2018 I opened the Brexit loan scheme for applications to allow for the roll-out of a €300 million fund in working capital for eligible Irish businesses which will be impacted on by Brexit. The scheme will be delivered by the Strategic Banking Corporation of Ireland through the commercial lenders, the three pillar banks. It will make €300 million available to eligible businesses, with up to 499 employees, at an interest rate of 4% or less. That is an attractive rate for an overdraft facility. In addition, we have a €300 million long-term future growth loan scheme which will lend to businesses, with terms up to eight to ten years. Currently, the pillar banks will only lend for up to seven years. We have identified this gap in the market. We will be passing the legislation required and launching the scheme in early January next year.

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