Figures from the Central Bank show that lending to small and medium enterprises (SMEs) fell by
€390 million to €26.6 billion in the second quarter of 2012.
That is a drop of 1.4% over the three months to June and a drop of 4.6% in the 12 months to June in lending to non-financial, non-property SMEs.
New loans drawn down by SMEs in that sector amounted to €459m during the second quarter.
Credit advanced to all non-financial, non-property related enterprises declined by €530 million or 1.3% in the three months to June and 4.6% in the 12 months to June according to the Central Bank figures.
Enterprises involved in property related enterprises engaged in construction and real estate activities was 1.9% lower in the year to June and fell by €613 million in the three months to June.
Deposits held by Irish businesses in Irish banks rose by €623 million or 0.8% during the second quarter of 2012. Deposits held by non-financial businesses were €35.4 billion at the end of June, an increase of 0.7% on the previous quarter. The overall level of deposits fell 1.4% from June 2011.
There was €33.7 billion in loans to SMEs in the property sector at the end of June, 55.9% of the total credit outstanding to non-financial SMEs. Lending to SMEs in three sectors increased in the second quarter of 2012; manufacturing sector, water supply, sewerage, waste management and remediation sector and the education sector.
Rural development organization Leader East said they are “open for business” and have called on SMEs in their area to contact them.
Leader East represents development companies in 11 counties in the east of Ireland and can offer up to 75% grant assistance to private sector enterprises employing up to 10 people.