A €1.2 billion credit scheme will be available to Irish farmers, fishers and food businesses to help them deal with higher costs arising from Russia's invasion of Ukraine, Minister for Agriculture, Food and the Marine Charlie McConalogue has said.

The Ukraine Credit Guarantee Scheme will provide additional support and financial flexibility for businesses affected by current inflationary pressures, particularly increased energy costs.

Bank of Ireland will be the first lender to the market for the scheme providing reduced-interest-rate loans, Minister for Enterprise, Trade and Employment, Simon Coveney, Minister McConalogue, and Minister for Finance, Michael McGrath announced.

Businesses which have experienced an increase in costs of over 10% on 2020 will be allowed to access lending terms of up to six years, on loans ranging from €10,000 to €1 million, with amounts of up to €250,000 available on an unsecured basis.

A number of lenders are expected to take part in the scheme, which will facilitate loans for working capital and medium-term investment until December 31, 2024.

Announcing the first lender, Minister McConalogue said he was pleased to be able to ensure that the Ukraine Credit Guarantee Scheme will be available to farmers, fishers and food businesses.

"This initiative will play a key role in ensuring ongoing access to short-term finance and the ongoing viability of the agri-food sector and of businesses generally," he said.

The most important features of the Ukraine Credit Guarantee Scheme are:

All main features of the scheme, which has been prepared in order to comply with the terms of the European Commission’s Temporary Crisis Framework for State Aid, can be found on the Department for Enterprise, Trade and Employment's website.

Making the announcement, Minister Coveney said: "The illegal invasion of Ukraine by Russia and its consequences has led to increased costs for business across numerous areas of their operations.

"Many businesses need access to liquidity and this credit guarantee scheme gives that.

In July 2022, Minister Coveney informed the government that he was considering a credit guarantee scheme to provide liquidity support to businesses, as part of his department’s response to the Ukraine crisis.