Macra wants overdrafts restructured into term loans included in agri-loan scheme
Macra na Feirme has called on the SBCI and the pillar banks who will administer the new agriculture cashflow support loan scheme to include farmers who have restructured overdrafts into term loans.
The agri loan scheme will be rolled out across Ireland in January 2017.
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Macra na Feirme met the Strategic Banking Corporation Ireland (SBCI) recently to discuss the rollout of the new agri loan scheme and other young farmer credit line options. Term loans are not part of the scheme.
Speaking at the meeting, Macra na Feirme national president Seán Finan said: “We welcome the low-interest loan scheme but having received feedback from a number of young farmers across the country, we were very clear with the SBCI that those farmers who acted responsibly and who restructured their overdraft debt to a term loan need to be included as part of this new loan scheme.”
The agri loan initiative will be rolled out in January 2017 and used to refinance working capital including merchant credit and overdraft facilities, but not term loans.
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Finan added: “Farmers who continued to exhaust overdraft facilities will be facilitated under the current scheme where other farmers who acted more responsibly and restructured to term loans are now being penalised.
‘‘This scenario does not make sense and Macra na Feirme is calling for this to be addressed prior to the rollout of the scheme.”
The issue of access to finance at affordable rates for young farmers who want to carry out medium- to long-term development works and investments was also discussed at the meeting.
Finan concluded: “We look forward to engaging further in early 2017 with the SCBI to discuss the establishment of a young farmer finance package and credit line for medium- to long-term development works at affordable rates for young farmers with little security but who have viable business plans.”
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Macra na Feirme met the Strategic Banking Corporation Ireland (SBCI) recently to discuss the rollout of the new agri loan scheme and other young farmer credit line options. Term loans are not part of the scheme.
Speaking at the meeting, Macra na Feirme national president Seán Finan said: “We welcome the low-interest loan scheme but having received feedback from a number of young farmers across the country, we were very clear with the SBCI that those farmers who acted responsibly and who restructured their overdraft debt to a term loan need to be included as part of this new loan scheme.”
The agri loan initiative will be rolled out in January 2017 and used to refinance working capital including merchant credit and overdraft facilities, but not term loans.
Finan added: “Farmers who continued to exhaust overdraft facilities will be facilitated under the current scheme where other farmers who acted more responsibly and restructured to term loans are now being penalised.
‘‘This scenario does not make sense and Macra na Feirme is calling for this to be addressed prior to the rollout of the scheme.”
The issue of access to finance at affordable rates for young farmers who want to carry out medium- to long-term development works and investments was also discussed at the meeting.
Finan concluded: “We look forward to engaging further in early 2017 with the SCBI to discuss the establishment of a young farmer finance package and credit line for medium- to long-term development works at affordable rates for young farmers with little security but who have viable business plans.”
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