Pearse Doherty (Donegal South West, Sinn Fein)
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65. To ask the Minister for Finance the way the Strategic Banking Corporation of Ireland will be treated in the national accounts; and if he will make a statement on the matter. [18746/15]

Michael Noonan (Limerick City, Fine Gael)
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The Strategic Banking Corporation of Ireland (SBCI) was established in 2014 and has since signed funding deals, recruited staff, signed lending contracts with two banks and appointed a board of directors. Most importantly the SBCI commenced lending to businesses in the real economy through AIB and Bank of Ireland at the start of March 2015. SMEs have already begun to access SBCI funds to grow and develop their businesses. More lending partners will join with the SBCI throughout the course of 2015 increasing choice for SMEs and driving competition in the markets for SME credit.

Eurostat determined that the SBCI should be classified in the general government sector from its inception in 2014. Further information regarding this decision can be located on Eurostat's website

As with any body classified in the general government sector, any borrowing undertaken by the SBCI from external third parties is included in general government debt. As the borrowing will be subsequently lent on to other parties, this is considered a loan asset and will be included in the calculation of net debt. The surplus or deficit of the SBCI will count towards the general government balance. The impact of the SBCI in the context of the overall general government balance is negligible.  

The SBCI has been included in the March 2015 EDP return prepared by the Central Statistics Office. The SBCI has also been included in the general government forecasts published by my Department in the Spring Economic Statement and Stability Programme Update of April 2015.