Terence Flanagan (Dublin North East, Independent)
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25. To ask the Minister for Jobs, Enterprise and Innovation if he will provide an update regarding the credit guarantee scheme; and if he will make a statement on the matter. [5852/15]

Richard Bruton (Dublin North Central, Fine Gael)
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In line with commitments given on the introduction of this initiative a review of the SME Credit Guarantee Scheme (CGS) introduced under the Credit Guarantee Act 2012 was completed last year and laid before the Oireachtas in July 2014. As a result of the review of the Scheme and on foot of immediate concerns raised by the Credit Review Office, Business Representative Organisations and the banks, I have decided to take urgent action to assist SMEs whose banks have left or are leaving the Irish SME lending market.

This will see a new CGS 2015 made in accordance with the terms of the Credit Guarantee Act 2012 which will allow guarantees for refinancing loans where an SME's bank has exited or is exiting the Irish SME market. This new Scheme will also increase the maximum length of guarantees under the CGS from 3 years to 7 years.

In addition, my officials are in the process of finalising the Credit Guarantee (Amendment) Bill which is on the A list of the spring legislative programme. This Bill will see further enhancements to the CGS on foot of the review process including: extending a wider range of financial products to be covered not just traditional credit products (e.g. invoice finance, factoring, leasing, overdrafts); a wider range of providers of financial product to be eligible, i.e. not just banks who hold a licence under the Central Bank Act 1971; an increase in the level of guarantee on individual loans from 75% to 80%; an increase in the portfolio cap, i.e. the maximum a bank can claim in respect of its portfolio from 10% to 13%; and the removal of the annual portfolio cap and instead each bank will run a single Credit Guarantee Scheme portfolio. These changes will make the CGS much more attractive to businesses.

The progress of the CGS is being continuously monitored and my Department places quarterly reports on its website.

As of close of business on 30 January 2015 there are 118 live CGS facilities resulting in €15.6m being approved through the CGS. In addition a further 14 CGS loans have been repaid for over €1.8million.

As a result of these live and repaid CGS facilities for SMEs it is expected that there will be 650 new jobs created and 340 jobs will be maintained.