Central Bank intervenes on vulture funds
ICMSA lobbies top bankers on plight of indebted farmers
Restrictions on the manner in which vulture funds deal with borrowers may be in the pipeline following a meeting between ICMSA and the Central Bank last week.
ICMSA pressed the Central Bank to issue a 'guidance document' for farmers whose loans have been acquired by so-called vulture funds.
While the Central Bank did not directly accede to the request, officials outlined the "various protections and Central Bank codes" that are in place to protect borrowers, including farmers, whose loans have been sold to third parties.
The bank said it had "committed to providing further information to the ICMSA" to help inform their members of the various protections available to borrowers.
Recent reports that AIB is considering selling off €1.8bn in non-performing loans, including farm loans, to vulture funds remains a major concern for farmers. Although the State-owned bank - bailed out with €21bn in taxpayer funding since 2008 - has not confirmed or denied this move, such an announcement is feared in advance of the bank's privatisation later this year.
It's understood a US vulture fund, Cerberus, is a potential buyer.
Ulster Bank sold 900 owner-occupier mortgages, on the brink of repossession, to the same investment firm last October.
ICMSA requested the meeting with the Central Bank to raise what it described as "deep concern" felt by farmers regarding vulture funds.