AIB to restructure all problem mortgages within six months
Published 12/11/2012 | 05:00
ALLIED Irish Banks plans to have addressed all home loans in arrears within six months with either interest forbearance or other forbearance such as split and trade-down mortgages.
The bank's CEO David Duffy said the bank plans to restructure up to 2,000 mortgages a month until the end of next March as it cranks up efforts to finalise the arrears issue with over 10,000 households.
In an interview with the ' Sunday Times', Mr Duffy said he would be meeting with the Central Bank this week to discuss its mortgage arrears resolution strategy.
"In one year, we need to be crystal-clear about where we are with restructuring households, companies and multi-connections," Mr Duffy revealed.
He said that within a year, all distressed homeowners and small and medium-sized businesses would be in some form of forebearance program.
Mr Duffy said the bank would write off some debts to ensure that restructured loans are sustainable for clients in the long term.
However, he warned against seeing the upcoming Personal Insolvency agreement legalisation as a panacea and said he doesn't see a "huge call" for it if consumers and bank work together.
"When it comes to addressing debt issues, I think people have to realise there will be an adjustment in lifestyle," he added.
Meanwhile, Mr Duffy said there was plenty of interest in bank from private equity firms and hedge funds who are interested in the bank's loans books.