Irish economists estimate property debt overhang on SMEs
Economic letter is first ever attempt to calculate extent of property exposures
A minimum of 20% of Irish small and medium-sized enterprises (SMEs) have direct exposure to property debt, which could act as a drag on the recovery in employment, investment and output, according to an economic letter published by the Central Bank of Ireland today.
In the letter, Fergal McCann and Tara McIndoe-Calder calculate the cost of these exposures for the institutions that hold them, noting that default rates are "substantially higher" for SMEs with property exposures.
"Although the
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