SME lending declines for 23rd consecutive quarter

Lending to SMEs has fallen for the 23rd consecutive quarter and is down 7.5% for the year, new Central Bank figures show.

The watchdog said credit to SMEs — considered to be 250 employees or less — declined by 0.8% over the quarter to €27.5bn in its latest report examining lending in the second quarter.

The weighted average interest rate on new non- financial SME loan drawdowns was 4.05% in the second quarter, which was a fall of five basis points over the year, the Central Bank report said.