Banks lent more than €100 billion to property developers last year, according to new figures from the Irish Central Bank.

Private-sector credit figures published yesterday show that in 2007 lending for real estate dealing and property development reached a high of €105.8bn - representing a growth of €22.5bn (27%) and equating to 80% of all business lending.

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Last year the total amount of property-related lending, including money advanced to developers and people buying homes, increased by €39bn to total €246bn.

This means that property-related lending accounts for 62% of all private sector credit growth in the Irish economy for 2007.

The Central Bank's figures also show a sharp decline in property-related lending between September and December last year - further substantiating reports of a market slowdown.

(VB/JM)