Joan Burton (Dublin West, Labour)
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Question 272: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the progress in regard to the commitment given in the programme for Government that the Government will encourage financial institutions to provide European Investment Fund guaranteed loan finance to small businesses. [17926/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Competitiveness and Innovation Framework Programme (2007-2013) contains a financial instrument, the SME Guarantee Facility that aims to improve the financial environment for SMEs by facilitating their access to debt and equity finance. The European Commission published a Notice in the Official Journal of the European Union on 26 September 2007 addressed to financial intermediaries for SMEs, such as banks and institutions operating guarantee schemes, outlining information on the financial instrument. The SME Guarantee Facility is operated by the European Investment Fund (EIF) on behalf of the European Commission. Financial intermediaries are free to make contact directly with the EIF concerning participation in the facility and I am aware that some have done so in the past.

My Department has informed the Irish Bankers' Federation of the proposal, the operation and the scope of the arrangement. My Department has made itself available to any bank interested in pursuing the possibility of securing funding under the SME Guarantee, with a view to their being put in contact with relevant officials in the European Investment Fund (EIF) and/or the European Commission, for further advice and assistance.

Proposals from financial intermediaries will be examined by the EIF on a continuous basis, within the constraints of the available Community budget allocations. Irish financial intermediaries will, therefore, continue to have an opportunity to participate in the Facility. My Department will continue to encourage participation and will remain available to financial intermediaries wishing to access the Facility. Participation in the Facility is a commercial decision for any financial intermediary concerned.