Farmers will suffer from ACC Bank closure
Published 30/10/2013 | 05:36
THE ACC Bank announcement that it is to quit the Irish market will cause huge concern to the institution's farmer customer base which will, in most cases, be faced with making completely new banking arrangements, Kerry ICMSA Chairman Noel Murphy from Milltown said this week.
ACCBank announced last week that it is pulling out of Ireland after suffering losses of more than €200 million for last year. However, the agri-lending bank said it will continue to be a regulated entity and will support its customers in the farming sector.
However, despite this assurance, Mr Murphy pointed out that the cessation of current accounts and overdraft facilities would effectively force farmers to move all their banking to a new institution and that would involve major disruption and the likelihood of increased charges as well as possible legal fees to cover the transfer of loans or mortgages.
In terms of the possible damage to the overall farming and agri-food sector, Mr Murphy farmer said that the disappearance of another source of credit and financial services to Irish farm families was very regrettable and that it was in the national interest that every effort was made to locate and bring in financial institutions that could supply the credit at reasonable terms that was so necessary for the state's biggest and most dynamic exporting sector.