Hogan envisages cheap EIB New Year loans
The New Year — or sooner if possible — was the starting date envisaged by EU Agriculture and Rural Development Commissioner Phil Hogan during his visit in Ireland last week.
He acknowledged that Ireland has not formally decided to get involved,. “But I presume it will,” said Mr Hogan.
“I am confident that the presence of An Taoiseach and Minister Coveney is indicative of the support of the Irish government for this important initiative, which has enormous potential for farmers and rural communities throughout Europe,” he told the first of four regional European fi-compass conferences on financial instruments, at the Convention Centre in Dublin, which was attended by Taoiseach Enda Kenny and Agriculture Minister Simon Coveney; EIB Bank Vice President Molterer; and chair of the European Parliament Agriculture Committee Czeslaw Siekierski, MEP.
“We are rolling out a new financial instrument that will give low-interest loans for longer periods of time to younger farmers taking over who need some capital investment. So a farmer could get money at approximately 3% over a 15 or 20-year period for various measures on their farm in terms of capital investment,” he said.
The Commissioner said the Government must include it as part of its rural development measure, in order to get over the EU state aid restriction.
It would enter into negotiations with the European Investment Bank directly, and find the distribution channel or financial institution to make the loans available in Ireland. He also held out the prospect of LEADER funding from EIB loans, as part of the rural development programme.
