SME credit boost claim disputed

THE flow of credit to small and medium-sized enterprises (SMEs) has improved, according to a hotly contested survey.

The latest quarterly SME lending survey – carried out by professional services firm Mazars and the Irish Banking Federation (IBF) – claimed the last three months of 2009 saw 29,000 credit applications, with a combined value of nearly €1.6bn, from small firms being approved and more than four out of five loan applications being approved.

However, small firms lobby group ISME has dismissed the findings, stating there has been no improvement in banks’ lending levels to SMEs and that the Government needs to act urgently to free-up badly needed credit for the sector. Chambers Ireland has also called for a loan guarantee scheme, similar to one in Britain, to aid the apparent growth in credit flow.