The latest figures from the ECB show that bank interest rates paid in Ireland by small and medium businesses, and farmers, are high relative to some other EU countries. Average interest rates are 5.7% for Irish SMEs compared with 3.3% for the average of eurozone member states.

Rates in other member states include:

  • France: 2.25%.
  • Germany: 3.1%.
  • Spain: 3.8%.
  • Italy: 3.5%.
  • IFA president Eddie Downey said that despite the policy measures so far put in place by the Government, including SME lending targets for the pillar banks and establishment of the Credit Review Office, the Irish bank sector is uncompetitive. “The Government must insist that the lower cost of borrowing that commercial banks face are reflected in lower interest rates for agricultural loans,” he said.