Access to credit ‘toughest’ in Ireland, says Honohan

Ireland is the most difficult country in the eurozone for small businesses to access credit, according to Central Bank governor Patrick Honohan.

Mr Honohan said credit was not flowing as freely in Ireland as in other European countries. Speaking at the opening of the Central Bank conference on the SME lending market yesterday, Mr Honohan said: “Credit conditions for SMEs are tougher in Ireland than anywhere elsewhere in the euro area both in terms of cost and availability.”

Mr Honohan said the banking system was still emerging from the credit crisis and banks were un-willing to lend as by their assessments, very few firms are worth the risk. Even firms that previously would have had good working relationships with their bank may have over extended themselves in the boom.