Written answers

Tuesday, 5 July 2016

Department of Finance

Credit Union Lending

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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148. To ask the Minister for Finance when he will extend the pilot scheme for micro-finance which was set up in November 2015 with 30 credit unions involved and which was restricted to cash social protection customers who would repay the loan via the HB system which had a 97 % satisfaction rate as confirmed by customers, to all social protection persons and families on low-incomes and roll it out to all credit unions, this being dependant upon the agreement of the Central Bank; and if he will make a statement on the matter. [19705/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I think it important to note at the outset that credit unions already play an important ongoing role in making loans available to people on low incomes.

As regards to the Personal Microcredit Scheme, this was commenced on a pilot basis in November 2015 and 30 credit unions are involved in providing individual loans of between €100 and €2,000 with a maximum interest rate of 12% a year. The Programme for a Partnership Government contains a commitment to roll-out and extend the scheme.

The initiative is being led by the Department of Social Protection. In terms of extending the scheme, I understand that initial roadshow events have been held recently in Dublin, Cork and Athlone and I understand that so far there has been significant interest from credit unions considering joining the scheme.

The intention is to extend the geographical remit of the scheme by adding to the 30 credit unions which participated in the pilot, and to broaden the target audience.

I understand that roll-out to newly participating credit unions is expected to commence in the coming months, though it must be noted that the scheme is voluntary for individual credit unions.

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