Banks miss the target for SME funding

Credit to small and medium-sized enterprises via various funding tools missed the target set for October by 137 million euros, according to Development Ministry data.

It therefore appears extremely unlikely that banks will meet the 2-billion-euro target for credit given to SMEs by the end of the year, a goal now postponed to end-February 2014.

Last month banks issued funding of 713 million euros to SMEs against a target for 850 million, with National Bank being the only systemic lender to make its target. Banks attributed this to the climate of uncertainty last month as well as their workload in arranging their own affairs.

The issue was the focus of a meeting on Friday between minister Costis Hatzidakis and the board of the Hellenic Bank Association.

“I expect banks will do everything they can to make up for the lost ground in the following months,” Hatzidakis said after the meeting.