merrion street

Finance Minister Michael Noonan today welcomed the National Pensions Reserve Fund announcement of three new long-term funds that will provide equity, credit and restructuring / recovery investment for Irish small and medium-sized businesses and mid-sized corporates.

The Minister said:

I am pleased that the National Pensions Reserve Fund has agreed the establishment of the funds that I referenced in my Budget speech in such a speedy manner. The NPRF has taken a lead role in the development of the three funds and will be a cornerstone investor in each alongside additional investment from third-party investors.

Two of these funds will play a very important role as they will focus on businesses that either have overleveraged balance sheets or businesses that are underperforming and can be turned around. The third fund is focused on larger SMEs that require credit. The provision of this credit will serve to protect existing jobs and assist in the creation of new jobs.

The work of these funds will also complement the credit available to SMEs from the pillar banks. I have been informed by the Credit Review Office that both AIB and Bank of Ireland met their commitment to make credit of €3.5 billion available to SMEs in 2012. The Government expects the pillar banks to meet their commitment to make €4 billion of credit available in 2013 as it is in the interest of both our economy and the banks’ own interest to be lending to businesses that are operating in a growing economy.

I placed SMEs at the centre of Budget 2013. The establishment of these funds will complement the 10 point plan for SMEs. The Government is determined to do everything in our power to assist SMEs to grow and take on additional staff as it is only through the growth of the SME sector that we will address the unemployment crisis.