70pc of loans to SMEs perform
THE majority of loans to SME businesses are performing, according to new research from the Central Bank.
It says 70pc of loans to small and medium-sized businesses were performing at the end of 2010. Just 18pc were on a watch-list or were past due, while 12pc were impaired.
The data used in the analysis comes from a sample of SME loans collected for the March 2011 Financial Measures Programme Report and used in stress testing the Irish banking system.
The news will bring a positive boost to the sector, which claims it has had difficulty obtaining loans from financial institutions.
The sector with the largest share of performing loans was agriculture, at 81pc, while hotels and restaurants had the lowest share of performing loans, at 49pc.
The Central Bank says the largest sectors in terms of the banks' exposure to SMEs were wholesale and retail (20pc), financial (16pc), hotels and restaurants (15pc) and agriculture (15pc).