Willie Penrose (Longford-Westmeath, Labour)
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834. To ask the Minister for Agriculture, Food and the Marine if he has consulted with the European Investment Bank with a view to securing the availability of low interest rate funding from this institution which would assist farmers in re-organising their farm debts in order to deal with significantly increased overdrafts and merchant debt arising from the feed crisis; if appropriate submissions have been made to enable such a loan scheme to be utilised for working capital; and if he will make a statement on the matter. [28031/13]

Simon Coveney (Cork South Central, Fine Gael)
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I have met with the major Irish banks in recent weeks to ensure that they are providing funding for farmers in these difficult times. The banks have responded to my call for understanding and flexibility and indeed have issued advertisements in national media telling farmers that they are willing to provide short –term facilities to deal with the feed issues. I will continue to monitor the situation.

Discussions took place with the EIB last year in relation to the availability of low interest rate funding. In general the EIB operates such schemes via local banks. In addition there are State Aid restrictions on any schemes that provide an interest rate lower than the ordinary market level.

I am prepared to discuss any possibilities with farm organizations to see whether some mechanism can be found to provide further funding where necessary.