SMEs face obstacles accessing credit
The survey found that Irish SMEs have the second highest rejection rate from banks for loan applications and overdrafts in the eurozone, apart from Greece, although demand for credit is above the region’s average. Moreover, Ireland has the second highest level of “discouraged borrowers”, which means firms that do not apply for a loan even though they need credit.
The results will make grim reading for the Government. Economic recovery remains hamstrung by the sclerotic state of the domestic economy. And without access to credit, prospects of a return to growth among domestic firms appears remote.
