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Ministers Coveney, McGrath and McConalogue welcome AIB as lender for €1.2bn Ukraine Credit Guarantee Scheme

14 Jun 2023

Wednesday 14 June 2023 - Allied Irish Bank Group (AIB) has today confirmed it is joining the Ukraine Credit Guarantee Scheme as a lender. This Scheme has a lending ceiling of €1.2 billion and facilitates loans for working capital and medium-term investment.

The important features are:

Businesses will have certainty that their liquidity funding needs can be met through low-cost loans supported by the Government. This is a central pillar of the Government’s response to aid businesses impacted by rapidly rising costs as a result of the invasion of Ukraine.

Minister for Enterprise, Trade and Employment, Simon Coveney, TD, said:

“This Credit Guarantee Scheme gives much needed access to liquidity to businesses that are impacted by the ongoing cost increases arising from the illegal invasion of Ukraine by Russia. The favourable terms and pre-eligibility availability makes this Scheme attractive and accessible to businesses including SMEs, farmers and fishers.

“The Government will continue to assist businesses in the most practical, targeted and effective way as we continue to negotiate a challenging trading environment.”

Minister for Finance, Michael McGrath TD, said:

“This Government is committed to supporting Irish SMEs. We understand that businesses continue to face significant challenges in relation to inflationary pressures in the energy and commodity markets, resulting from Russia’s invasion of Ukraine.

“The Ukraine Credit Guarantee Scheme sends a strong signal of the Government’s support to businesses by making up to €1.2 billion of low cost working capital available to SMEs, primary producers and small mid-caps affected by these inflationary pressures and enable them to continue trading through this crisis.

“The Scheme allows businesses which have experienced an increase in costs of over 10% on 2020 due to the impact of the conflict, to access lending terms of up to 6 years, on loans ranging from €10,000 to €1 million, with amounts of up to €250,000 available on an unsecured basis.

“I welcome Allied Irish Bank’s decision to join the Strategic Banking Corporation of Ireland as an on-lending partner for this scheme. SMEs play a critical role in the Irish economy. It is of pivotal importance that Irish banks provide competitively priced liquidity to SME customers.”

Minister for Agriculture, Charlie McConalogue TD, said:

“I welcome the addition of AIB as lenders under the €1.2 billion Ukraine Credit Guarantee Scheme. While our world-class agri-food sector has shown its ability to adapt to various situations, it is important to continue to support businesses in a practical and targeted way to effectively meet their liquidity and working capital needs. This further demonstrates the Government’s continued support for farmers and agri-businesses in this time of economic uncertainty arising from the impacts of the conflict in Ukraine.

“I was pleased to be able to ensure that the Ukraine Credit Guarantee Scheme will be available to farmers, fishers, foresters, and food businesses. AIB’s participation in the scheme affords farmers and businesses more choice and increased accessibility to lower-cost funding and I am confident this initiative will play a crucial role in ensuring the ongoing viability of the agri-food sector and businesses generally.”

Colin Hunt, CEO of AIB said:

“We are aware of the impact the Russian invasion of Ukraine is having on Irish businesses and the challenges this represents in terms of rising energy costs and disruption to supply chains. We are delighted to once again partner with the Strategic Banking Corporation of Ireland (SBCI) to bring the Ukraine Credit Guarantee Scheme to market to support our business and farming customers. In particular the provision of unsecured loans of up to €250,000 makes this scheme an attractive option for borrowers.”

June Butler, CEO of SBCI said:

“We welcome AIB as the newest lender to the market for the Ukraine Credit Guarantee Scheme. AIB’s participation in the Scheme means Irish businesses will have another access point to lower-cost funding when it is needed the most, which is a key priority for the SBCI.

“This Scheme provides additional support and financial flexibility to those businesses directly or indirectly impacted by the conflict in Ukraine, allowing them to fund their working capital and investment needs. The provision of unsecured loans of up to €250,000, together with the reduction in applicable interest rates, makes the Scheme a viable option for borrowers.

“The SBCI will continue to play its role in supporting Irish businesses during these turbulent times, as they seek access to financing to grow, innovate and thrive into the future.”

AIB customers can apply for the Scheme online at aib.ie/sbciukraine