A fund that assists organisations to access funding through the Immigrant Investor Programme (IIP) has expressed disappointment at the Government's decision to shut the project down.
The cabinet yesterday decided to scrap the scheme, after it said it received strong advice to end it.
But the Irish Diaspora Loan Fund (IDLP), which helps to funnel investment coming from the IIP to recipients in rural parts of Ireland, said the move was a blow to indigenous businesses that benefit from it.
The fund, which is authorised and regulated by the Central Bank of Ireland, has invested €54m in family-run hotels and nursing homes since the IIP was set up in 2016.
"To date the Fund has supported over 1,000 rural jobs through the funding it has provided," the IDLF said in a statement.
The fund, chaired by former Taoiseach John Bruton, also pointed out that the closure of the programme comes at a time when two banks are leaving the market.
"It is regrettable that the cessation of the programme has been announced abruptly without consultation, leaving indigenous businesses in these sectors with limited options for alternative financing, with potentially disastrous consequences for those businesses," it said.
"The sudden nature of the announcement calls to mind those tech companies who attempted to terminate their workers suddenly and without consultation, sparking justifiable outrage, so it is particularly unfortunate that this action is coming from the Government."
The IIP has resulted in €1.2 billion in investment into the country, with charities, businesses, social housing and sporting organisations all benefiting.
"An additional €1.5 billion is awaiting approval from the Department," the IDLF claimed.
"This has proven to be a vital form of foreign direct investment into the country."
