Industrial Development Act, 1986

Guarantee of loans and interest subsidy for restructuring industry.

[1977, s. 2; 1981, s. 6]

26.—(1) For the purpose of promoting the restructuring of industry, the Authority may, in the case of the acquisition by an industrial undertaking of the whole or part of another industrial undertaking or in the case of an amalgamation between two or more industrial undertakings, in addition to any other power conferred on it by this Act—

(a) make a grant, on such terms and conditions as it thinks proper, towards the reduction of interest payable on a loan raised in connection with such an acquisition or amalgamation,

(b) guarantee the due repayment of the whole or part of the principal of any money (including money in a currency other than the currency of the State) borrowed in connection with such an acquisition or amalgamation or the payment of interest on such principal or both the repayment of the principal and the payment of such interest.

(2) The Authority shall not, without the prior permission of the Government, give a guarantee in respect of money borrowed in connection with an acquisition or amalgamation referred to in subsection (1) or make a grant towards the reduction of interest payable on a loan raised for such purposes where the amount of the principal of any money the subject of the guarantee and the amount of the grant payable towards the reduction of interest exceed in the aggregate £750,000.

(3) Section 14 (4) applies to a guarantee under this section in money in a currency other than the currency of the State.