Government launch €400m fund to offer SMEs reduced rate loans
The Government's most senior leaders have launched a new €400m fund that will lend to small businesses at cheap rates.
The money from the new Strategic Banking Corporation will be used to fund loans of up to €5m at reduced cost to companies for periods of two to 10 years.
The money will be loaned out through the main banks.
AIB said it will cut two percentage points off the cost of its standard business loans to 4.5pc and Willkie €200m available to farm and business customers using the scheme .
Money to finance the new initiative has come from the National Pension Reserve Fund, the European Investment Bank and Germany's state owned investments bank KfW.