Bank lending to small and medium businesses in Ireland at record low
New survey rates Irish market as second worst environment for credit
Banks in Ireland now rank as the second lowest borrowers to small and medium businesses according to new data from the European Union.
Eurostat, the EU’s central statistics office, has just released statistics which prove that Irish banks are the second worst in Europe for lending to business.
The latest Eurostar review reveals that the percentage of unsuccessful applications for bank credit in Ireland by smaller companies rose to 27 per cent in 2010 from just one per cent three years earlier.
Bulgaria topped the poll of unsuccessful applications with a 36 per cent rejection rate with Ireland in second place on 27 per cent.
Next up were Latvia (26 per cent), Holland (23 per cent), Lithuania and Britain (both 21 per cent). The lowest rejection rate was in Finland (0.2 per cent), Malta (2 per cent), Cyprus and Poland (both 4 per cent) and Italy (5 per cent).
Only Sweden recorded a fall in the level of unsuccessful applications, from nine per cent to six per cent in the survey of 19 of the 20 EU member states.
In its report, Eurostat said the economic crisis has made it more difficult for small and medium-sized enterprises to access banking credit.
Speaking to the Irish Examiner, the chief executive of Ireland’s Small and Medium Businesses Association Mark Fielding, confirmed that companies in Ireland are struggling without access to bank credit.
“The reckless bankers who have created the financial crisis, under the eye of Government, must not be allowed to terrorize business owners under the guise of newly discovered ‘prudent lending’,” said Fielding.
“The state, as the major shareholder, must insist on a return to ‘normal economic lending’ to business and must monitor this through proper, honest statistics and returns to the Central Bank.
“Up to now these returns have been incomplete fairy tales and subject to manipulation by the banks to suit themselves, as was pointed out in three recent reports.”
However, a spokesperson for the Irish Banking Federation claimed that a recent report from the Central Statistics Office showed that 74% of loan applications were fully or partially approved.
He also said that the IBF and member banks working with a Department of Finance Stakeholder Group which includes the commissioning of market research to provide further insight into the nature and extent of SME demand for credit.
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This article has been shown to be wrong in almost every 'fact' it stated. The pigeon hunter is furious! LOLThe New York Times questions Ireland’s highly-praised economic recovery
"RECOVERY" My Arse The Country is in so much debt just about paying interest while borrowing 1 bl per month They have just been caught robbiThe New York Times questions Ireland’s highly-praised economic recovery
A bit of sleight of hand, I think. Rather than look into cleaning up the economy in the US, they'd rather try to find someone worse off. I wonder if tOffensive NFL sign outside restaurant just a symptom of a larger problem
Hi Chuck, if we get rid of red, what will Carl Rove do? After all it was his idea to associate red with the Republican Party.