Rates on very small loans, which can be taken as a proxy for loans to small and medium-sized enterprises (SMEs), have declined by around 200 basis points. The significant improvement in funding conditions for SMEs is especially encouraging as these companies provide two-thirds of total private sector employment in the euro area. Heterogeneity of lending rates across countries has also fallen sharply.
For example, the difference between the average lending rate for firms in countries which were severely affected by the crisis, and the average lending rate for firms in other countries, has narrowed by more than 110 basis points since we announced our policy measures. The pass-through of our monetary policy has become more even.