Defaults fall but SMEs face higher interest payments

Irish SMEs are paying higher interest rates on their loans than many of their European counterparts while recent EU-wide decreases haven’t materialised in the domestic market either.

The Central Bank’s latest SME Market Report shows Irish firms are paying more for credit than their contemporaries while the research also finds rates did not decline in line with the euro area from 2014.

Data compiled for the six months to September of last year show an average interest rate of 5.7% for loans of €250,000 or less.