In Short

A round-up of today's other stories in brief

Loans for cosmetic surgery soar

Easycare Credit, the company that lends money to people seeking cosmetic surgery and dentistry, is receiving applications for loans totalling €200,000 a week from Irish consumers.

The company, which was established last year, said applicants were typically aged 24-40 and were evenly divided between men and women.

The lender will advance the cost of dental work, laser eye surgery, hair restoration, cosmetic surgery and fertility treatments.

In 2005 Irish people spent more than €250 million on "aesthetic" or non-essential health treatments such as laser eye surgery, dental treatment and various cosmetic procedures. Cosmetic surgery accounts for 40 per cent of all applications, according to founder and managing director Marie Byrne, followed by laser eye surgery, which accounts for 30 per cent of applications.

The average amount borrowed is €5,500 and is repaid over three years. The typical interest rate is 9.9 per cent APR for loans over €5,000 and 11.9 per cent for loans under €5,000 and there is a handling fee. Once approved, Easycare pays the money directly to the practitioner.

Piba warns over 'borrowing culture'

Consumers have been warned not to borrow beyond their means by the Professional Insurance Brokers Association (Piba).

The body issued the warning this week as several lenders, including AIB and Bank of Ireland, passed on the quarter percentage point increase in the European Central Bank (ECB) base rate to their standard variable rate customers.

"Banks and other lending institutions have been stress testing borrowers to ensure that they can withstand a rise in interest rates. Nonetheless, a culture of borrowing has been built up," said Piba chairman Liam Carberry.

IFS opens another forestry plan

IFS Asset Managers has opened a forestry growth plan just weeks after closing its most recent plan due to demand.

The new forestry plan offers investors a projected return of 8.5 per cent a year tax free over 12 years. The minimum investment in the plan is €750.

Taking advantage of EU and Irish Government grants, IFS will use €2 million of investors' money to purchase semi-mature plantations and bare land. After 12 years, the land will be sold on the open market, with all profits distributed tax-free to investors.IFS customers have invested €62.5 million in forestry and have a total of 15,500 acres under managed plantation.

Financial groups raise savings rates

This month's increase in the European Central Bank (ECB) interest rate is proving good news for savers, as several financial institutions have increased their savings rates.

Dutch online bank RaboDirect has increased its deposit rate from 3.35 per cent to 3.5 per cent, effective from Monday. Anglo Irish Bank earlier increased the interest payable on its regular saver account from 4.5 per cent to 5 per cent. It also increased the rate on its 30-day notice account, its easy access account and its seven-day notice account.

Quinn Life fund tracks FTSE 100

Quinn Life has launched a new index-tracking investment fund that tracks the performance of the FTSE 100 index.

The UK Freeway fund gives investors access to the largest blue-chip companies in the UK, including Barclays bank, oil company BP and pharmaceuticals company GlaxoSmithKline. The FTSE 100 represents 80 per cent of the UK equity market.

The fund has an annual administration charge of 1.2 per cent, reducing to 0.7 per cent after 15 years. There are no initial charges.