SBCI should be redeveloped on a rainy day creditor sector of Irish SMEs

  • SBCI should be redeveloped on a rainy day creditor sector of Irish SMEs
    Independent.t. E.
    Interest rates start to go up around the world – but not in the middle of nowhere.
    https://www.independent.ie/business/small-business/latest-news/sbci-should-be-repurposed-as-a-rainy-day-lender-for-irelands-sme-sector-37224640.html
    https://www.independent.ie/incoming/article37224333.ece/5974e/AUTOCROP/h342/eurolots.jpg

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Interest rates start to go up around the world – but not in the middle of nowhere.

The European Central Bank that regulates interest rates are guided by that low interest rates will continue in Europe until this time next year, at least.

This means, banks had no need of cheap financing SBCI, when he could just in this case to obtain cheap money in the markets, according to Chairman of the SBCI Conor O’kelly. This would raise a question mark about whether the SBCI and the associated cost for the state should be available at all.

In SBCI then branched into so-called risk-sharing, exposing the state to the risk of loans going bad. Now it’s one thing to do that when the country is in crisis, but quite another when he’s roaring ahead.

May look at SBCI is like a rainy day Fund for SMEs. It can be preserved in good times and brought out when needed.

For example, quarter and month, is one of the dark clouds on the horizon for the Irish economy, and it makes sense to have the SBCI to use a new scheme for government loan the UK out of the EU, which aims to help companies to fend off threats.

But we have to think very, very carefully about whether the government will take the risk on the loan, when the economy is growing.

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