Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance the extent to which it has been found possible to fill the vacuum caused by various banking interest withdrawal from the Irish market with particular reference to the hotel and catering sectors; the degree to which all sectors are affected by such withdrawal; and if he will make a statement on the matter. [2208/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

A number of foreign based banks are exiting the Irish market and concentrating on their home markets. Irish banks are adopting a similar strategy and deleveraging from foreign markets. The impact of the exiting banks on particular sectors will reflect the extent to which they focused on that particular sector. One of the ways that the Government is addressing the reduced capacity is through refocusing the NPRF’s investment towards commercial investment in Ireland.

Last week, the NPRF announced investment commitments to a suite of three new long-term funds which will provide equity, credit and restructuring/recovery investment for Irish SMEs and mid-sized corporates. The NPRF is also currently reviewing additional SME fund opportunities that would complement these commitments, with the objective that the eventual suite of funds would have the capacity to invest across the full spectrum of SME financing needs.

Other Ireland-focused initiatives during 2012 included the provision of a standby facility to enable the Schools Bundle 3 PPP project (eight primary and post-primary schools) to proceed with European Investment Bank (EIB) financing and the NPRF’s collaboration with Silicon Valley Bank which will make US$100 million of new lending commitments available to fast-growing Irish technology, life science, cleantech, private equity and venture capital businesses.

The credit stream available to SMEs in all sectors now includes the Microenterprise Loan scheme which will facilitate up to €40million in additional lending to microenterprises over the next five years. In addition, the Temporary Partial Credit Guarantee Scheme can facilitate up to €150m per annum of additional credit. The Scheme is designed for SME’s which, due to lack of collateral or because of the specialised sector they operate in, face difficulties in accessing bank credit.

All of these additional initiatives increase the pool of available credit for SMEs. However, as the Deputy will agree, credit should only be advanced to businesses that can demonstrate continued and sustainable viability.