The SBCI’s primary strategic goal is to deliver financial instruments to the SME market in Ireland, either directly or as a service provider, in order to address market failures in the provision of credit to SMEs. We have a vital role to play in restoring an effective and sustainable market for SME financing in Ireland and a wider role in the long term, as a conduit for State and European financing supports. We are taking a phased market entry approach to the achievement of this strategic goal with delivery of additional long-term, low cost lending to SMEs through the principal banking institutions. Additional credit will also be provided to SMEs, through a range of non-bank finance providers across a diverse range of products and risk-sharing activities.

As of end-2016 the SBCI had secured €1.2 billion in low-cost funding from European and domestic sources. The SBCI will continue to seek to source other European funding with a view to introducing new credit measures in the future and building a central conduit for European supports to the Irish market.

Low cost funding arrangements for three new on-lenders were put in place in 2016 with a focus on specific niche finance. This brought the total number of on-lenders to eight – three banks and five non-bank institutions. At end-2016 total on-lending committed stood at €906 million with €544 million drawn down by SMEs. Through our involvement, some of the SBCI’s on-lending partners have been able to enter new market segments, providing finance or leasing products that they have not provided in the past, bringing additional lending capacity, broader choice and lower interest rates to SMEs across the country.

Risk sharing offers the SBCI the opportunity to target new specific SME market segments that may otherwise have difficulty in accessing finance. In 2016 we developed the Agriculture Cashflow Support Loan Scheme. In a parallel programme, the SBCI was appointed as the operator and manager of the Credit Guarantee Scheme.

Looking ahead to 2017, the SBCI will continue to add new on-lenders, and through its model, continue to deploy low cost funding sourced from its partners to SMEs in Ireland. We will also seek to develop innovative risk-sharing products to address market failures. To support its current activities, and the development and delivery of new products, the SBCI raised an additional €25 million of capital in February 2017, through the issuing of shares subscribed for by the Minister for Finance. This equity injection will allow the SBCI to continue to grow and develop its strategy in a prudent manner.

In conclusion, I would like to thank all of my fellow directors for their contribution over the past year. I also want to thank the Chief Executive Officer, Nick Ashmore and the SBCI staff for their dedication and achievements. We have made good progress in 2016 and looking ahead, our goal is to continue to build on this success in order to provide effective financial support that meets the evolving needs of Irish SMEs.