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Central Bank : 50% of all SME Loans "in arrears"


gerhard dengler

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Feb 3, 2011
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Fiona Muldoon, Central Bank director of Credit Supervision, has said that half of €50 billion of loans by banks outstanding to small to medium sized (SME) Irish firms are "not performing (are in arrears)" at present.

Half of small business debt is impaired, says regulator - Irish Economy News & Headlines | The Irish Times - Thu, Apr 11, 2013
Half of loans to SMEs are non-performing - RTÉ News

I might well be wrong but this is the first time the Central Bank of Ireland has given indicative figures as to the level of loan performance for SME's.

70% of all private sector employees work for SME's.

The figure of €25 billion bank loans in arrears is a huge figure, and given the number of people employed in those companies the loan amount outstandin figure has to be having a knock-on effect with regard to trade debtors and trade creditors throughout the SME sector.

Those SME trade debts represent another threat to companies in that sector.
 

Dublin 4

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You forget to stick Some "Recovery" in your Title ger :p
 

Telemachus

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Website
en.wikipedia.org
Forecast as of Apr 2013
Source201320142015Total
NERI1%1.2%2%2.22%
ESRI1.3%2.3% NA%
Central Bank1.3%2.5% NA%
European Commission1.1%2.2%2.80%3.328%
IMF1.21%2.2%2.70%3.437%

Not to worry - we have some stunning GDP growth predictions for the coming years. Yah, right.petunia
 

gerhard dengler

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Feb 3, 2011
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47,554
The level of arrears presents a threat to the SME companies who are in arrears.

More worryingly Fiona Muldoon says that she cannot be sure if Irish banks have sufficient capital to account for losses on those loans, until the "banks work through their loanbooks".
And there was me thinking that we had the "best capitalised banks anywhere in de world"

PCAR anyone?
 

Dan_Murphy

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Deposit holders of Ireland: you have been warned.
Surely if the ECB has to come for Irish deposits they'll go for them anywhere in the EU? Just saying, our problems are much much larger than Cyprus. Short of buying a pile of gold and burying it in the garden what escape mechanism is there?
 
Last edited:

Expatriot

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Surely if the ECB has to come for Irish deposits they'll go for them anywhere in the EU? Just saying, our problems are much much larger than Cyprus. Short of buying a pile of gold and burying it in the garden what escape mechanism is there?
Back garden? I like it.
 

stopdoingstuff

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Surely if the ECB has to come for Irish deposits they'll go for them anywhere in the EU? Just saying, our problems are much much larger than Cyprus. Short of buying a pile of gold and burying it in the garden what escape mechanism is there?
Foreign bank accounts and other foreign assets.
 

Dan_Murphy

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Back garden? I like it.
Not my back garden of course, I am bad at remembering where I put stuff, can barely remember where my glasses are half the time.

Can I bury it in yours? I'll need you to look after it as if it were your own! :)
 

storybud1

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Synthetic Bio Companies are all the rage according to tomorrows world, they are making ethanol from bacteria now. it is recession proof and the raw materials are cheap and abundant.
 

Malbekh

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It should be pointed out that about 50% or so of these loans were SME's also known as developers, construction companies and their contractors/employers. Yes, it 's bad, but not as bad as it sounds.
 

oggy

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Oct 28, 2009
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Thought I had moved beyond shock till I heard that 50% on News. Hope it doesnt become a constant point of reference. Even during the boom many of that 50% in trouble were in trouble then and part of the unspoken truth about how difficult it is to succeed in business at any time
 

Radix

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Fiona Muldoon, Central Bank director of Credit Supervision, has said that half of €50 billion of loans by banks outstanding to small to medium sized (SME) Irish firms are "not performing (are in arrears)" at present.

Half of small business debt is impaired, says regulator - Irish Economy News & Headlines | The Irish Times - Thu, Apr 11, 2013
Half of loans to SMEs are non-performing - RTÉ News

I might well be wrong but this is the first time the Central Bank of Ireland has given indicative figures as to the level of loan performance for SME's.

70% of all private sector employees work for SME's.

The figure of €25 billion bank loans in arrears is a huge figure, and given the number of people employed in those companies the loan amount outstandin figure has to be having a knock-on effect with regard to trade debtors and trade creditors throughout the SME sector.

Those SME trade debts represent another threat to companies in that sector.


I was watching Brendan Howlin on the news this evening insisting that yet another €300,000,000 be shaved off the public sector pay bill, and I thought of all the SME's who depend on consumers for their very survival, and for their ability to service their debts. It is an impossible situation for almost everyone at this stage as everyone is being funneled into an impossible bottle neck, with home owners who become less able to service mortgages approaching their lenders, only to find that there is no meaningful debt forgiveness for their Celtic Tiger mortgage packages.

Similarly with those business owners who opt to keep trading, but merely find their trading position becoming worse every year that passes, because of the effects of the continuing liquidation of the country until it is bled dry it would seem, and with all of the human misery associated with this.

But what really annoys me, is that the so called 'leaders' of our country talk about "making Ireland the best place in the world to do business", when the citizens are opting to leave by plane, boat and rope, such is the lack of hope being offered by these 'leaders'.

And then they offer us 'The Gathering', which has 'Kenny Lite' written all over it.

Shame!

If I was Kenny, I would drop a word in Noonan's ear saying, "we need to do something to stop the country going down the tubes altogether. We 'own' the banks now; get them to go through their books, and write out to every single SME still in business after all they have been put through this far, and tell them that we want to help you grow your business out of this bloody awful recession. Say that, 'you guys are the backbone of this country and always have been, you are the job creators, you are the innovators who ultimately pay our wages. What can we do to help you help our country?'"

I suspect I will be waiting a long time for properly 'joined up thinking' by this particular Government, whose ideological priorities seem to be objectively inverted and without any creative logic, but instead, intent on cravenly pleasing others, instead of manning up and fighting for our people and for our country's future.

Let me out of here!
 

powderfinger

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Jun 13, 2007
Messages
3,353
It should be pointed out that about 50% or so of these loans were SME's also known as developers, construction companies and their contractors/employers. Yes, it 's bad, but not as bad as it sounds.
Are you sure it's that high Malbekh?
 

ygargarin

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Joined
Apr 1, 2012
Messages
2,356
I was watching Brendan Howlin on the news this evening insisting that yet another €300,000,000 be shaved off the public sector pay bill, and I thought of all the SME's who depend on consumers for their very survival, and for their ability to service their debts. It is an impossible situation for almost everyone at this stage as everyone is being funneled into an impossible bottle neck, with home owners who become less able to service mortgages approaching their lenders, only to find that there is no meaningful debt forgiveness for their Celtic Tiger mortgage packages.

Similarly with those business owners who opt to keep trading, but merely find their trading position becoming worse every year that passes, because of the effects of the continuing liquidation of the country until it is bled dry it would seem, and with all of the human misery associated with this.

But what really annoys me, is that the so called 'leaders' of our country talk about "making Ireland the best place in the world to do business", when the citizens are opting to leave by plane, boat and rope, such is the lack of hope being offered by these 'leaders'.

And then they offer us 'The Gathering', which has 'Kenny Lite' written all over it.

Shame!

If I was Kenny, I would drop a word in Noonan's ear saying, "we need to do something to stop the country going down the tubes altogether. We 'own' the banks now; get them to go through their books, and write out to every single SME still in business after all they have been put through this far, and tell them that we want to help you grow your business out of this bloody awful recession. Say that, 'you guys are the backbone of this country and always have been, you are the job creators, you are the innovators who ultimately pay our wages. What can we do to help you help our country?'"

I suspect I will be waiting a long time for properly 'joined up thinking' by this particular Government, whose ideological priorities seem to be objectively inverted and without any creative logic, but instead, intent on cravenly pleasing others, instead of manning up and fighting for our people and for our country's future.

Let me out of here!
You're one of the few people who see that the king has no clothes!

This country is fvcked. Everyone needs to assess their personal situation and find their best survival route.
 

Malbekh

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Apr 30, 2009
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Are you sure it's that high Malbekh?
No. But Mark Fielding from ISME was quoting something similar. The question would rather be, how much of the debt attached to the construction sector is accounted for?
 

powderfinger

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Jun 13, 2007
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No. But Mark Fielding from ISME was quoting something similar.
The question would rather be, how much of the debt attached to the construction sector is accounted for?
Ditto for the Agriculture,Food,Hotel,Wholesale,and Retail lending sectors.
 

Radix

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Joined
Aug 31, 2010
Messages
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You're one of the few people who see that the king has no clothes!

This country is fvcked. Everyone needs to assess their personal situation and find their best survival route.


Thanks for the reply Yuri, and with the greatest of respect, your response is confirmatively indicative of the failure of Government in this country given what has happened to us.

You are right, we have become a Darwinian country of 'the survival of the fittest' in a fast race to the bottom, regardless of the cost to individuals within our society, whatever is left of such a 'society'.

I suspect more and more that Kenny, Noonan, Howlin et al have little or no concept of 'social justice', and if they have, they have a strange way of showing it.
 
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