AIB says family farm homes excluded from non-performing loan sale
AIB has said that family farm homes are not included in its sale of its non performing loans (NPLs) to a consortium lead by Cerberus Capital.
Among those purchasing the loans at a discount rate is credit management company Everyday Finance, which is regulated by the Irish Central Bank.
IFA President Joe Healy acknowledged the banks commitment to exclude family farm homes, but said he remained concerned that some investment loans secured against farmland may be included.
Healy said his Association has had significant and ongoing engagement with AIB in recent weeks, on a range of issues affecting the farming community, including the resolution of non-performing loans in arrears.
They stressed the Association’s strong opposition to farm loans being included in any sale of non-performing loans.
“AIB advised that most farm borrowers in financial difficulty have engaged and have had loans restructured.
“AIB also said it will not include restructured loans that are performing to agreed terms in any future potential loan sales,” he said.
In a statement this morning AIB said the portfolio to be sold is characterised by levels of deep long term arrears with c.90pc over 2 years in arrears and c.70pc over 5 years in arrears, reflecting a lack of sustained and meaningful engagement and/or debt sustainability.