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Add to Preferred SourcesThe Boards of the European Investment Bank and European Investment Fund have approved support for the Future Growth Loan Scheme, a new EUR 300 million lending program to support investment by Irish companies most exposed to Brexit related uncertainties.
The Future Growth Loan Scheme is a key component of the Irish Government’s Getting Business Brexit Ready programme announced by Finance Minister Paschal Donohoe in his Budget 2019 speech.
The new initiative will target agriculture and food companies across the country, as well as firms active in other sectors, through new long-term credit lines provided by leading Irish finance providers.
“While there is no magic solution that prevents economic damage from Brexit, the EIB Group – the European Investment Bank and the European Investment Fund – recognises Ireland’s exceptional exposure and – as EU institutions – we are committed to supporting Ireland’s continued prosperity. That is why earlier this week – supporting yesterday’s Budget announcement by the Irish Government – we approved the “Future Growth Loan Scheme” initiative to help Brexit-exposed firms get access to EUR 300 million of new financing essential to protect their growth and jobs. This builds on two successful SBCI loan guarantee schemes supported by the EIB Group in the last 24 months. The EIB Group will continue to look at ways to support growth capital for Irish firms.” said Andrew McDowell, European Investment Bank Vice President.
The new lending programme will tackle the limited availability of long-term accessible loans for SME and midcap companies in Ireland as well as supporting new investment by companies exposed to UK markets.
As part of the Investment Plan for Europe, the European Investment Bank Group will provide a EUR 150 million guarantee to the Strategic Banking Corporation of Ireland for the new initiative. The new scheme follows EIB Group support for the SME Brexit Loan Scheme and replicates the EIB’s SME Initiative guarantee model that has successfully supported business investment across in 5 EU countries.
The initiative builds upon two previous SBCI loan guarantee schemes supported by the EIB Group in the last 24 months, together supporting some €750m of lending capacity.
Over the last decade, the EIB Group has provided more than EUR 6.7 billion for infrastructure and business investment across Ireland.
Original source: EIB
Published on 10 October 2018