Factsheet for measure
IE-2023-5/3083
–
Updated
– measures in Ireland
New loan scheme to help businesses impacted by war in Ukraine
Background information
Against the background of the ongoing war in Ukraine and the severe rise in energy costs, the government announced a new scheme to assist SMEs impacted. The scheme is considered a central pillar of the government’s response to aid businesses impacted by rapidly rising costs as a result of the invasion of Ukraine.
To give a legislative basis to such a scheme, the Credit Guarantee (Amendment) Bill 2022 was signed into law by the President on 2 December 2022.
Content of measure
The Ukraine Enterprise Crisis Scheme will provide €1.2 billion in reduced interest rate loans to SMEs, farmers and fishers.
The scheme for SMEs, primary producers and small mid-caps (defined as businesses with up to 499 employees). SMEs are expected to be the main beneficiaries.
Loans last for a period of up to six years and cost up to €1 million in total with reduced interest rates. The scheme will run until 31 December 2024.
In order to qualify, the applicant has to declare that costs have increased by a minimum of 10% compared to their 2020 figures and that the loan is being sought specifically as a result of difficulties resulting from the Ukraine crisis.
The government will guarantee 80% of the loan with the lender retaining 20% of the risk of the loan.
The new scheme has been prepared in order to comply with the terms of the European Commission’s Temporary Crisis Framework for State Aid.
Updates
The following updates to this measure have been made after it came into effect.
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14 June 2023
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In June, Allied Irish Bank Group (AIB) confirmed it is joining the Ukraine Credit Guarantee Scheme as a lender.
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Use of measure
No information.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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SMEs
Other businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
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Companies
National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: N/A
Involvement
No involvement.
Views and reactions
No information available.
Sources
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27 October 2022: Tánaiste announces new €200 million Ukraine Enterprise Crisis Scheme
(enterprise.gov.ie)
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30 January 2023: Ministers Coveney, McGrath and McConalogue announce first lender to the market for €1.2 billion Ukraine Credit Guarantee Scheme
(enterprise.gov.ie)
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14 June 2023: Ministers Coveney, McGrath and McConalogue welcome AIB as lender for €1.2 billion Ukraine Credit Guarantee Scheme
(enterprise.gov.ie)
