Financial institution of Eire launches 2 billion euro Brexit Fund


FILE PHOTO: Irish and European flags fly outdoors the European Fee headquarters in Brussels, Belgium, Februray 6, 2019. REUTERS/Yves Herman

DUBLIN (Reuters) – The Financial institution of Eire stated on Friday it’s going to earmark 2 billion euros (£1.74 billion) for lending to small and medium companies that want capital to adapt to the challenges of Britain’s departure from the European Union.

Eire’s central financial institution has stated {that a} disorderly Brexit might have very extreme and instantly disruptive results on nearly all areas of Eire’s economic system.

In line with the central financial institution’s evaluation, Britain leaving the European Union with no deal might knock as a lot as four share factors off the Irish economic system’s progress fee in its first full 12 months, and as much as 6 share factors over a decade.

“This 2 billon euro fund will present help to companies no matter how the UK exits the EU,” stated Gavin Kelly, CEO of Retail Eire at Financial institution of Eire.

“Many might want to adapt how they function because the Brexit end result turns into clearer. Brexit isn’t ‘enterprise as regular’,” he stated.

A spokeswoman for the Financial institution of Eire stated the fund is for Brexit-related lending and also will help companies which have deferred Brexit plans due to the heightened uncertainty out there due to the Brexit negotiations.

“A few of these companies don’t have any dealings with or via the UK, however have determined to attend till end result is understood to proceed with their plans.”

Reporting by Graham Fahy; Enhancing by Hugh Lawson

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