SME loans half of mooted €58bn

The total amount of credit outstanding to SMEs in the real economy is €24.5bn and not the figure of €58bn that has been circulating in the media over the past week, according to the Central Bank.

In lecture by the UCD economist Morgan Kelly last weekend, he said the SME sector is carrying €58bn of debt and €33bn of this total relates to property debt.

Professor Kelly argued that when the ECB carries out its stress tests later this year the banks would be forced to move on this property debt, which would presage widespread business failures and lead to a spike in unemployment.