Simon Coveney (Cork South Central, Fine Gael)
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Section 4A of the Credit Guarantee Act 2012, provides me with the power to give guarantees in accordance with the COVID-19 Credit Guarantee Scheme. As guarantor of the Covid-19 Credit Guarantee scheme (CCGS) my Department bears 80% of the risk should a loan under this scheme default; with the financial provider bearing the remaining 20%. I have signed legal guarantee agreements to this effect with each of the financial institutions that have been approved to provide lending facilities to their clients.

Where a participating enterprise is unable to pay back the loan for more than 90 days, the loan enters a default stage and the finance provider can call on the guarantee for 80% of the outstanding balance. Each call on the guarantee is reviewed and considered by the Strategic Banking Corporation of Ireland (SBCI) as Operator of the Scheme and recommended for payment where it meets the terms of the Scheme and the guarantee agreement.

I cannot accede to this request to provide details of any payments under guarantee in respect of individual loan defaults as the legal guarantee agreements are between myself as guarantor and the individual financial institutions and not with individual clients of these financial institutions.

Further information is that PQ 39599/23 was withdrawn by Deputy Ring.