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€150m Agriculture Cashflow Support loan scheme

Written by Robert McHugh, on 31st Jan 2017. Posted in Agriculture

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The Strategic Banking Corporation of Ireland (SBCI) has today confirmed that AIB, Bank of Ireland and Ulster Bank will distribute the SBCI’s Agriculture Cashflow Support loans, making €150 million available to farmers throughout Ireland at a low-cost interest rate of 2.95%.

The Agriculture Cashflow Support loan scheme was announced in the Government’s 2016 Budget and is being developed in conjunction with the Department of Agriculture, Food and the Marine. It aims to support farmers experiencing short-term financial pressure due to price and income volatility.

The loans will enable farmers to plan and budget more effectively by providing an attractive alternative to more expensive forms of credit such as merchant credit and bank overdraft facilities.

The loan features loans of up to a maximum of €150,000 and loan term of up to 6 years. It can be used for working capital requirements as a more sustainable alternative to short-term credit facilities.

Commenting on the loans, Minister for Agriculture Food and the Marine, Michael Creed said, "The SBCI has demonstrated its commitment to the agriculture sector and has worked with my Department to get this product to the market in a timely manner."

He added, "I welcome the participation of the main banks, which will ensure nation-wide coverage for the scheme. The fact that most farmers will have an existing relationship with the participating banks should facilitate the loan application process."

Source: www.businessworld.ie

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