Calls for more low-cost loans as two banks say they are exhausted
On Thursday, Bank of Ireland confirmed its €65m low-cost loan fund has been applied for by farmers. AIB said on Friday all of its €60m low-cost loans have also been applied for.
Two of the banks have said their fund has been exhausted.
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Following confirmation by two banks that their low-cost loan funds had been applied for, there have been calls for further funds to be made available.
Martin Stapleton, IFA farm business chair, said the demand has highlighted the enormous gap on the market for working capital at a reasonable cost.
“Irish farmers are at a competitive disadvantage compared to their EU counterparts, with higher-than-average rates. The success of the scheme clearly shows the huge demand there is for competitively-priced working capital,” he said.
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Low-cost credit
He also said that there are farmers who did not apply for the loan on this occasion, but for whom access to low-cost credit in the future will be hugely important.
“The SBCI should build upon the success of this loan, and put in place additional funds over the coming months for lower-cost loans for both working capital and longer-term investment.
“As we did last year, IFA will be engaging with SBCI to make the case for this funding, and will use the evidence of the huge demand for the agri-cashflow loan to back this up,” Martin added.
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Title: Calls for more low-cost loans as two banks say they are exhausted
On Thursday, Bank of Ireland confirmed its €65m low-cost loan fund has been applied for by farmers. AIB said on Friday all of its €60m low-cost loans have also been applied for.
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Following confirmation by two banks that their low-cost loan funds had been applied for, there have been calls for further funds to be made available.
Martin Stapleton, IFA farm business chair, said the demand has highlighted the enormous gap on the market for working capital at a reasonable cost.
“Irish farmers are at a competitive disadvantage compared to their EU counterparts, with higher-than-average rates. The success of the scheme clearly shows the huge demand there is for competitively-priced working capital,” he said.
Low-cost credit
He also said that there are farmers who did not apply for the loan on this occasion, but for whom access to low-cost credit in the future will be hugely important.
“The SBCI should build upon the success of this loan, and put in place additional funds over the coming months for lower-cost loans for both working capital and longer-term investment.
“As we did last year, IFA will be engaging with SBCI to make the case for this funding, and will use the evidence of the huge demand for the agri-cashflow loan to back this up,” Martin added.
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