Single resolution process for SME debt

Multi-banked SME debt can be resolved through a single resolution process following a new protocol launched by seven banks.

The scheme is the latest attempt to deal with the massive level of SME debt in the system. Outgoing Central Bank executive Fiona Muldoon in a speech last year said that roughly half of the outstanding €50bn SME loans were in some sort of arrears.

The new protocol, which has been agreed through the Irish Banking Federation (IBF), will enable an SME that is in difficulty with a number of banks to enter into collective negotiations with banks participating in the scheme. There will be one channel of communication for the customer in arrears.