We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
THE GOVERNMENT IS planning to establish a new bank for lending to the small and medium enterprise sector.
A Department of Finance official confirmed that there will be a memo on the proposal passed to Government this week.
The mooted size of the bank’s war chest is around the €800 million mark. It will be called the Strategic Banking Corporation of Ireland, but it won’t have a branch network, with loans being administered by existing high street banks instead.
The cash will be raised from a variety of sources, including German government-owned bank KfW, the European Investment Bank and the Ireland Strategic Investment fund. It will be run by the National Treasury Management Agency.
The terms offered by the bank are thought to include cheaper rates of funding, which will be achieved by accessing the low interest rates attached to loans from the above sources and passing them on to borrowers.
A source close to the process declined to comment on reports that repayment terms will be over a period up to ten years, but advised that they will be “longer than is currently available in the market.”
To embed this post, copy the code below on your site
This is a pointless election stunt – so basically they are giving the banks control over €800m. These are the same banks which are already watching businesses go down the pan because they won’t lend to them or the criteria is so stringent only the elite businesses can get access to it.
Waste of time!
Smoke and big XXXK OFF mirrors that’s what this is. Don’t ever trust Noonan whatever the spin
Has anyone seen the episode of ‘the thick of it’ where they accidentally announce they’ve made a community bank….?
Folks,
This is just tinkering with our system to get votes,
In itself, it is a good “short Term”solution as our so called privately owned ( see Ireland’s rich List )Pillar banks won’t lone to our SME’s … So what did Government do? Get in a a German “Public Bank” KFW to lend at 50% less ( 1/2 the interest rate our Pillar banks lend ) to our SME’s. They pay back the principle and then ship the Interest back to Germany after our Private pillar banks get their cut for admin.
Did you know that Germany has one of the most comprehensive Public Banking system in the world,hence it is such a powerhouse economy, Globally 40% of banking is Public banking… so what does that mean? It means that the Interest earned from Public Banks goes directly back into the local Economy and used for Infrastructure,Hospitals Roads etc and loans from such “public Banks”can be,and are targeted at specific areas as SME’s. Public Banks are counter-cyclical when economy’s are not performing they fill in the gap.I figure the above announcement is in response to the Green Party and Sinn Fein commitment to set up Public Banking within our own ( Irish )Financial system.
If Interested you can get more information from my Twitter account slides.
Is this on top of the 2billion that was promised earlier today? Where is all this money coming from?
Public pensions.
Now if that was politicians pensions, you’d get a new record on thumbs up!
Tis a sick little country Anne
It’s hard to keep up with all the promises, I think this will be funded from our gas reserves which fg have promised. we will be seizing the gas fields back from Norway apparently just after the LE
Election stunt pure and simple. Didnt a member of this coalition say that everyone lies befor election s (to paraphrase)
That bank has been announced every 6 months or so for the last 3 years.
Have lost all interest in government spin, hype and promises. This is just the latest in a long list of garbage promises. Funny how it’s only a few days away from elections. Actually no, it’s not funny at all. It’s depressing that they still think we’re all gonna fall for this sh1t
smells doggy, think its just not for small businesses.
New bank its name anglo irish bank or national irish bank ah new bank to lend to the brown envelope gang not the real business that need it
I’m so confused by this move. First, we’ve already got the Strategic Investment Fund, so why not just further expand that ? Why the need for another new system and all the associated costs ? Second, bringing the private commercial banks into the chain only serves to open the door for them to get their greedy little mitts on a nice chunk of it for themselves. Third, what lending criteria will be attached ? If it’s the same set of criteria as applied now by the main commercial banks then this €800m will never reach the SMEs who need it because the banks will say they’re too risky. I’m afraid this announcement is not credible, especially coming up to an election where the risk exists that it’s only being pushed out there to win votes. We need more clarity from Noonan before we can weigh up whether or not what he says is true or a load of political garbage.
Hi Patrick,
I can understand your confusion as what the Government Politico are doing is “Mickey Moused” vague and a wonky crutch for the crippled Irish Nation ( remember Ireland was brought to it’s Knees by the Private banking system and then bailed out ) and to be honest they don’t have a real solution to solve our banking problem, so it’s easy for them to listen to the ECB, BIS and of course the Troika ( the private banking Divine trinity) and because public banking ( ie.banking in the public interest..Interest being the operative word ) is seen as a “solution” and a means to take back control of our Finances but it is also seen as a threat to the private global banking system, therefore to rock the boat requires initiative and bravery. So in short the guys (our great leaders) are happy to plod along listen to the great European finance guys.So,It makes you wonder and ask why ?
This young Canadian lady asks the same about her Government..and advocates a solution
I’d prefer if it was called the Strategic Banking Corporation of Europe…..thank all the same!!
with the info on hand; it does seem that the kfw sales guy is currently negotiating another ‘win win’ situation….for Germany…….
When can we expect the next drip feed of information please?! – for I’m already getting worried…on account of your previous immaturity when negotiating with German banks…
Another beautiful idea.
Let’s use German money without issuing bonds by pretending they’re investing in Irish business.
This is the steam of their p!ss… it is the very least they could do.
That is also to say that it looks like the most they will do.
We need that like another whole in head. Basically just a red herring.
High Street banks? Meh.
At least there is some positive discussion in the pipelines for the sme’s. With extra funding available there are many sme’s out there that can do really well!
The idea of a new state bank was floated back in the height of the crisis. The idea was that you wouldn’t need to bail out the banks which after all are private-sector commercial companies. Looks like we bailed out the banks so they’d continue lending to SME’s, and then, now that we can see that they won’t, we’re going to set that state bank anyway.
This is immoral behaviour. Our TDs and councillors are abusing our children’s futures by buying votes. They will borrow this money to finance their friends enterprises and give the banks more of taxpayers money. The banks in turn will loan it to their friends or give it to sponsor Professional Rugby or the GAA. The same banks are making people homeless. I wish the banks would go out and measure the land banks developers have kept for themselves. I bet some developers fenced off most of each site for their families and left the bad parts for the banks and NAMA. is there anybody actually measuring the sites.
Anglo II: Because the riff-raff cottoned on to Anglo I.
Why don’t they invest more in the credit union?
have your say