Stephen Donnelly (Wicklow, Fianna Fail)
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537. To ask the Minister for Agriculture, Food and the Marine the number of loan applications made under the cashflow support loan scheme by county; the number of applications accepted; and the value of the loans made in tabular form; and if he will make a statement on the matter. [25407/17]

Michael Creed (Cork North West, Fine Gael)
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Earlier this month I welcomed the release of preliminary information from the Strategic Banking Corporation of Ireland (SBCI) regarding the uptake of the Agriculture Cashflow Support Loan Scheme. The Scheme, which was developed by my Department in co-operation with the SBCI, makes €150 million available to farmers at interest rates of 2.95%. Distributed and administered through AIB, Bank of Ireland and Ulster Bank, the Scheme provides farmers with a low cost, flexible source of working capital, allowing them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises.

The SBCI reported that €60.2m has been drawn down by farmers to the end of April. The average loan size is €32,000, with more than half the loans being advanced for terms of four years or more. Normal bank lending criteria applies to the Scheme and the terms and conditions of each individual loan are agreed between the bank and the applicant according to the purpose of the loans and the circumstances of the farming enterprise.

One of my priorities has been to address the impact of the change in the sterling exchange rate and lower commodity prices in some agriculture sectors. I am pleased at the very positive reaction by farmers to the Scheme, which has proved that significant demand exists for low cost flexible finance. I have met with the Chief Executives of the participating banks to discuss this and other access to finance issues relating to the agrifood sector. I have asked the banks to respond positively to the demand that has been demonstrated by reducing interest rates and providing more flexible terms for cash flow loans in the future.

The banks advise that all of the remaining €150m is committed and is in the process of being drawn down. Based on progress to date, the SBCI anticipate that in total approximately 4,000 farmers will benefit from the scheme. I attach the SBCI figures as reported on 2 May.