ACC Bank retains loan deals of 2,900 farmers despite closures
More than €310m in loans to 2,900 farmers will be retained by ACC Bank, despite its decision to close all of its Irish branches and business centres.
The bank has loan agreements in place with 2,900 farmers, with terms extending up to 15 years.
It also has 1,500 farmers among its 5,000 deposit account customers who have €110m saved. The move has been described as a blow to competition in the sector by farm organisations.
ACC confirmed to the Farming Independent that it would continue to hold its loans to the agriculture sector.
"The bank will continue to support its farming customers. There are no plans to transfer those loans to another bank or change terms. Any outsourcing will not include agricultural loans," said a spokesperson for the bank.
The bank intends to withdraw from providing standard banking products, such as deposit accounts and current accounts, and intends to focus solely on debt recovery.
"During 2014, the bank will close all its business centres to the public and intends to give up its banking licence.