AIB and Bank of Ireland meeting SME loan restructure targets

Tuesday 01 April 2014 11.59
The Central Bank has set targets for the banks to restructure non-performing loans to SMEs
The Central Bank has set targets for the banks to restructure non-performing loans to SMEs

Ireland's two largest banks, AIB and Bank of Ireland, have met the latest in a series of targets set by the Central Bank to restructure loans to small and medium firms in arrears. 

Last year the Central Bank said half of the €50 billion in SME debt was not performing. That is something UCD Professor Morgan Kelly says poses a huge economic risk. 

The Central Bank has set targets for the Irish banks to meet to restructure non-performing loans to SMEs. 

The range of solutions includes selling assets and extending the length of loans. But it also includes more drastic measures such as putting companies into receivership or examinership. 

In a letter to Fianna Fáil's Michael McGrath, Central Bank Deputy Governor Cyril Roux said the banks were being tested on a quarterly basis. 

But Mr McGrath criticised the Central Bank for not disclosing how much SME debt had been restructured to date.