GOVERNMENT SOCIAL FINANCE INIATIVE - In Europe every year over two million businesses are set up and 90% of these are very small firms with less than five employees.
Many of these companies can't get loans from banks, so to start up they have to look elsewhere for funding. Often they end up in the world of Microfinance, getting loans for less than €25,000.
To fund some of those small Irish businesses today the Minister for Finance is unveiling a pot of money adding up to €25m.
This has been put together by the banks, will be handled by the Irish Bankers Federation, and lent to worthy projects through intermediaries.
One of the potential intermediaries is First Step, a microfinance institution which lends up to €25,000 to projects which can't get funding elsewhere.
The company, whose chairperson is Norma Smurfit, has been in business for over 15 years and has helped 2000 projects, which together have created up to 8,000 jobs.
First step chief executive, John Cranfield, says that this new initiative will be a big addition to the sector, as it provide access to finance for intermediaries who can lend into the ever-increasing social finance market.
He says First Step provides loan capital funding for individuals who wish to start their own business. Money is lent in for an initial three year period, and is usually paid back over 36 months.
He says there is a growing number of those unable to secure a loan up to €25,000 from mainstream banks, an example could be the emerging emigrant population, and First Step fills this gap.
*** NCC WARNS ON KEEPING INFLATION DOWN - The Annual Competitiveness Report was published by the National Competitiveness Council yesterday.
The report warns rising costs need to be tackled because in the six years to last year Ireland significantly lost international price competitiveness.
The NCC says policy actions are needed to control rises in the cost base.
Forfas chairman Martin Cronin says that the NCC is very conscious that Ireland's costs are similar to other high income countries, which often have low inflation rates, and we have to aim for this also.
He says prudent fiscal policies can avoid Government cost increase above the norm.
He adds that building out our infrastructure will help to reduce costs to business, land planning could slow the rate of price increase on land and property, and ensuring strong competition in all our domestic prices are ways to keep inflation under control.
***NEWS IN BRIEF AND MARKETS - From next week British Airways is planning to add up to £240 to the cost of a return long-haul flight if passengers want to check in an extra bag, even if the combined weight of two bags is lower than the allowance.
Travellers on shorter international trips will face a bill of £120 and on domestic journeys, £60.
***Overnight in New York the Dow Jones closed unchanged and the Nasdaq closed slightly higher.
In Hong Kong the Hang Seng is down 1.5% and in Tokyo the Nikkei is slightly lower.
*** Finally on the currency markets the euro is worth $1.30 and £0.66 pence.
