Millions offered to SMEs via Credit Guarantee Scheme

The Strategic Banking Corporation of Ireland (SBCI) has revealed in its latest Quarterly Report that the Credit Guarantee Scheme has sanctioned €75m in lending to SMEs since the scheme’s infancy in October 2012.

Within the report, it states that some 471 facilities have been made by the Credit Guarantee Scheme, contributing towards the creation of or the maintaining of over 3,000 jobs.

In Q2 2017, the Credit Guarantee Scheme sanctioned funding for 34 Irish SMEs, amounting to more than €4m that will create or maintain 223 jobs across Ireland.

Pat Breen, Minister of State, Department of Jobs, Enterprise and Innovation, said: “I look forward to the SBCI’s roll out of the 2017 Scheme which will expand the range of financial products available to include non-credit products such as invoice finance and leasing, and overdrafts.

“I would encourage our SMEs that need financial support for growing and expanding their business to consider this option with one of the main banks.”

These encouraging figures were released just hours after it was announced the nation’s Central Bank had raised its economic growth forecast for 2017 to 4.5% from 3.5% three months ago.

The Central Bank cited stronger momentum nationwide and improved trading links within European markets as the main reasons for the sharp increase; maintaining Ireland’s economy as the best-performing within the European Union (EU) since 2014.

Gabriel Fagan, chief economist, Central Bank, said: “Revised projections for growth this year and in 2018 reflect both stronger momentum in the domestic economy and improved prospects for external demand, especially from our European trading partners.

“As a small and open economy, Ireland continues to face economic risks externally. And despite there being little new information emerging to date, it is clear that the economic impact of [the UK’s EU referendum] on Ireland is set to be negative and material.

“At home, we must continue to prudently monitor the risk of overheating.”

Date published 3 Aug 2017 | Last updated 3 Aug 2017