Noonan: Low-cost credit for small firms a 'red letter day' for Ireland

The Finance Minister Michael Noonan says the launch of a new €400m fund to provide low-cost credit to small businesses is a "red letter day" for the economy.

The Strategic Banking Corporation will begin offering the credit in two-to-10 year loans at AIB and Bank of Ireland from next month.

SBCI Chief Executive Nick Ashmore says he believes 99% of Irish firms will be eligible for loans, with most of the funding coming from the pension reserve fund, the European Investment Bank and Germany’s KfW.

The Finance Minister says the SBCI's launch is a milestone for recovery.

He said: "It is the most significant and positive announcement on the banking front in recent years.

"In 20 years time, people will look back and this day will be a red letter day when a further advance was made in the growing Irish economy and in the strengthening of the SME sector."