Farmers to avail of new AIB €500m agri-loan fund
More than 90% of the first €500m which AIB rolled out in 2014 has been drawn down by the bank’s farming customers.
Borrowed for use as working capital, capital expenditure and asset finance requirements, that fund was also backed by SBCI.
SBCI is the lending institution launched by Finance Minister, Michael Noonan, with the support of German Finance Minister, Dr Wolfgang Schauble, President Werner Hoyer of the European Investment Bank and Dr Ulrich Schroder of the German government-owned bank group KfW.
Agriculture Minister, Simon Coveney, said: “AIB introducing a subsequent fund on this scale will help to support and grow all sectors of the farming industry.
"The fact that the first fund has seen such a high level of drawdown is indicative of the appetite for capital in the farming community and the necessity for ongoing banking support.”
AIB’s managing director of retail, corporate and bsiness banking, Robert Mulhall, said: “The launch of this fund demonstrates AIB’s continued support for a key sector for the bank’s activity.
“We know 2015 has been a mixed year for farming with volatility a constant feature of agri-business. With the consistent decline in milk prices and another low year of margins in the pig sector, farmers may be experiencing cash flow pressure into spring 2016.
"We urge farmers to come to AIB where they will receive advice and support.”
