The SME sector is downplaying fears from a leading economist that small and medium firms are facing a "wipe-out".

Professor Morgan Kelly - who famously predicted the scale of the crisis in the property and banking sectors - says the ECB's planned inspections of Ireland's banks will uncover massive debt issues in Ireland's small firms.

He says the action against distressed loans could be "very, very horrible" - and a huge chunk of the economy could be wiped out in one go.

CEO of ISME Mark Fielding says the ECB's action won't be as severe as Professor Kelly fears.