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They never said it would be easy. Just when it looks that Ireland's battered economy is turning the corner, a storm builds to crisis proportions on the Euro zone's South Eastern periphery. The crisis has unfolded in distinct phases. The first consisted of German Government foot dragging over the go ahead for a €45bn rescue package that helped to spark panic in the bond markets, with resulting contagion effects for Portugal, Spain, and to a degree, Ireland. It is fortunate that the National Treasury Management Agency has prefunded much of this year's financial requirement, but the impact of the crisis on confidence, and on the cost of funds to the Irish banking sector, and by extension on borrowers, is real. The cost of the bailout swelled as the Germans prevaricated during
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Few doubt that small firms, the backbone of local communities, have been hit hard by the credit crunch. Many firms which would be viable when viewed from a long term perspective, have been forced prematurely to the wall, having been cut off at the knees by newly risk averse, cash strapped banks. Crunching Hard and Deep The accountancy group Mazars, has carried out a series of studies on credit availability. The latest review, published in mid April, indicates that while we have entered a period of stabilisation, the crisis remains very real. According to a statement issued by Ian Talbot, CEO of Chambers Ireland: "We note with concern that 35% of all loans granted to SMEs are now behind on payment. This figure is likely to act as deadweight on future loan applications and approvals, p
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