Bank of Ireland Business Banking today announced the launch of a new €75 million fund dedicated to the Irish nursing home sector. Specifically, the fund is earmarked for the provision of lending to nursing home owners and follows a steady rise in the Bank's involvement in the sector over the past five years.

Commenting on the launch of the fund, Andrew Cullen, Bank of Ireland Business Banking said: "The launch of our 2008 Nursing Home Fund represents our ongoing commitment to this sector. Nationwide occupancy levels are currently at 89% and the next decade will see the number of Irish people over 65 increasing by 167,000, giving rise to a requirement for an additional 10,000 beds. We are pleased to provide Irish nursing home operators with the financial support needed to meet this demand".

The new fund, which is available immediately, is one of a range of initiatives Bank of Ireland has launched for the sector, including:

• the establishment of a dedicated Nursing Home lending team in Business Banking, and the
   

• development of new Nursing Home lending guidelines and criteria based on size, location and bed capacity.

Bank of Ireland has launched the fund following the establishment of a new representative organisation for the private and voluntary nursing home sector – Nursing Homes Ireland. The new 'Fair Deal' for nursing home residents is also expected to commence later this year which will see new rules established for the payment of nursing home bills.

Also speaking at the launch of the fund, Tadhg Daly, Chief Executive of Nursing Homes Ireland said: "We in Nursing Homes Ireland welcome the launch of this fund and see it as a very positive development for the sector.

Nursing home owners continually have requirements in respect of new builds, increasing capacity and enhancing existing provision.

It is also necessary to have experienced lenders in place that understand and support the sector".