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Central Bank of Ireland -Central Bank releases new research on Irish SME property exposure

August 21, 2014

ENP Newswire - 21 August 2014

Release date- 20082014 - The Central Bank of Ireland today publishes a new Economic Letter 'Irish SME property exposure: what do we know?' (Economic Letter Vol. 2014 No.8).

This Letter provides information from survey and loan-level data which can help to quantify the exposure of Irish SMEs to property-related borrowing.

The main findings of this research include:

Survey data show that a minimum of one fifth of Irish SMEs have direct exposure to property debt.

Loan-level data show that at least 10 per cent of firms with bank debt have exposure to property investment at the same bank, with this figure rising to 16 per cent when including Buy-To-Let mortgages for a subset of the data.

Data on loan default suggests that property-related borrowing has had a detrimental impact on firms: SMEs with property-related borrowings have a loan default rate of 43 per cent, compared to 23 per cent for those without property exposure.

Further information: Press Office: (01) 224 6299;

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Source: ENP Newswire

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