Bank lending to SMEs outside financial and property sectors reduced by 4.5%

Mainstream bank lending to SMEs outside of the property and financial sectors fell almost 5% on a year-on-year basis, in the first quarter of 2014, Central Bank figures show.

The figures, published yesterday, show credit to relevant SMEs stood at €24.6bn at the end of the first quarter, up 0.1% on the preceding three months, but down 4.5% on an annual basis. Gross new lending to non-financial/ non-property SMEs came to €2bn in the 12 months to the end of March, slightly lower than for the same period a year earlier.

Firms in the agriculture sector continue to be the main beneficiaries of gross new lending.