Patrick O'Donovan (Limerick, Fine Gael)
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191. To ask the Minister for Social Protection if she will provide details on the personal microcredit scheme to be operated through credit unions; details on the pilot scheme to be put in place; and if she will make a statement on the matter. [26189/15]

Joan Burton (Dublin West, Labour)
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A proposal for a microcredit scheme in Ireland is currently being developed. The work is being carried out under the auspices of Citizens Information Board and the Social Finance Foundation and involves extensive engagement with a number of stakeholders including this Department, the Department of Finance, the Central Bank of Ireland, the Irish League of Credit Unions, the Credit Unions Development Association, the Money Advice and Budgeting Service and charity organisations.

A preliminary outline of the scheme envisages a microloan facility, operated by Credit Unions, providing small loan amounts (circa €500), over an average term of 12 months with an interest rate of circa 12%.

When the proposal is agreed with key stakeholders, an implementation plan will be developed with a view to piloting the initiative with a number of participating Credit Unions. It is expected that up to thirty Credit Unions could participate in the pilot scheme, each offering approximately twenty microcredit loans. The outcomes and learning from the pilot will inform the development of any final model prior to full roll-out.