New Irish bank to help fund SMEs
Ireland is setting up a new state bank to pump hundreds of millions of euro into struggling small businesses.
The Strategic Banking Corporation of Ireland (SBCI) will be funded by Germany and the EU as well as Irish pensions after a deal was struck with German Chancellor Angela Merkel.
The Government has vowed that SBCI will lend more than €500m to small and medium-sized firms which are being frozen out by the banks.
Taoiseach Enda Kenny said the new state-owned lender would help reinforce Ireland's economic recovery.
"Using funds from the German promotional bank KfW, the European Investment Bank and the Irish Strategic Investment Fund, the first phase will make over €500m available for small Irish business," he said.