Ireland one of stronger EU states for SME credit flow

Credit flow to SMEs is currently less of a concern in Ireland than in other EU member states that have experienced sovereign and banking sector difficulty in the past few years.

The latest SME Market Report, issued yesterday by the Central Bank, shows gross new lending levels to Irish small and medium-sized businesses grew by 10.5% —from €1.9bn to €2.1bn — in the second half of 2014, when compared to the same period last year. Unsurprisingly, the bulk of the new lending, in the latest period, went to the agriculture sector, with wholesale/retail and business and administrative services coming next.

The Central Bank’s findings also touch on a number of other surveys, including the recent Red C/Department of Finance study into credit demand. In this regard, the Survey of Access to Finance of Small and Medium Enterprises (SAFE), undertaken by the ECB and the European Commission is also noted.