SME loan arrears - Ominous figures for the economy

Amid the recent positive news of rising house prices and the economy picking up, there are some very disturbing indications about which everybody should be conscious.

Up to €8.6bn in bank loans to small and medium business are currently in arrears for over 90 days, according to the latest information available from the Central Bank.

Bank of Ireland, Allied Irish Banks, and Permanent TSB, the covered banks, have around 300,000 SME loans between them, with an average balance of over €71,000. A quarter of those are already considered in default, which accounts for 41% of the €8.6bn in outstanding loans.