Banks warned not to bury heads in sand on SME debt
"Real and meaningful action" needs to be taken by the banks to tackle what the president of the Institute of Certified Public Accountants in Ireland has labelled an SME debt crisis.
Joe Aherne warned that the balance-sheet reserves of many SME countries had been eroded through servicing unsustainable debt and that action had to be taken by the banking sector.
He said banks had taken a "head-in-the-sand" approach to dealing with mortgage debt and it was important the same mistakes weren't repeated with SMEs. "The banks claim to be partners in the recovery so they must prove that by turning their skills and expertise to this as a matter of urgency," he added.