German bank to help with funding of SMEs

The state-owned German development bank KfW is to contribute funding to the planned Ireland Strategic Investment Fund, part of the remit of which will be to improve funding availability to domestic SMEs.

The Frankfurt-based bank is also debating support for Greek SMEs and has already pledged €1bn in aid to support Spain’s small business community.

The Government yesterday said it had agreed a co-operative initiative with its German counterparts aimed at improving funding mechanisms for the economy, including SME financing.