Irish SME lending deteriorating

Banks have refused to provide credit assistance to 55% Irish SMEs during the period December 2009-February 2010, as compared to 42% in October last year, which has been revealed by a survey conducted by the Irish Small and Medium Enterprises (ISME).

The latest Bank Watch survey findings reveal that half of the loan applications and requests for overdrafts from Irish SMEs have been declined by banks in Ireland over the last 3 months that ended in February 2010, indicating worsening of bank lending scenario. The survey has also blamed lack of bank credit as a major reason for business closures and job losses over the said period.

According to the ISME Bank Watch survey, which attracted almost 800 responses, nearly 80% of the firms are of the opinion that banks are making it difficult for small businesses to secure affordable funding.

The ISME further stressed on the need for the government to intervene through the National Asset Management Agency (NAMA) process and compel banks to open up credit channels to help small firms get access to funding.

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David Parks is a well known author and has written articles on Hardware Manufacturers and Automobile Manufacturers, suppliers, Manufactures and many other subjects.