Anglo loans under €5m set for transfer

Laura Noonan

ANGLO Irish Bank's smallest land and development borrowers could soon find their loans transferred over to the National Asset Management Agency.

A spokesman for NAMA confirmed that the agency is considering scrapping a €5m threshold for the loans that will be taken from Anglo.

The threshold has already been scrapped for AIB and Bank of Ireland, leaving NAMA with thousands of extra cases and millions of extra loans.

"In practice, it was found that Anglo had only a very small number of relevant loans that were lower than €5m," NAMA's spokesman said.

"NAMA hasn't taken a final decision on whether to acquire these loans or not -- the issue will be reviewed and discussed in the New Year as the sub €5m AIB and Bank of Ireland loans are being processed."

AIB is set to be hit by loan losses of €1.4bn when its smaller borrowers go to NAMA.

A spokeswoman for Anglo declined to comment on the implications of a transfer of the bank's smaller borrowers.