Anglo selling off US loans and targets disposals of €700m
ANGLO Irish Bank has been selling off loans in the US in a "targeted way'' and plans to dispose of €700m worth of loans outside the NAMA process in the period ahead.
A $100m (€78m) loan given for an investment in Chicago and associated with investors lined up by Quinlan Private is the latest asset to be put on the block.
Loans given out to purchase a building in the West Loop area of Chicago have been offered to investors, the US publication 'Crains' reported this week. Anglo declined to comment on this yesterday.
However, results for the half-year, released earlier this week, disclose plans by the bank to sell off €700m of US loans outside the NAMA process.
These loans do not fit the exact criteria for property loans laid down by NAMA and were given to US customers. The bank said US loans would be sold in a "targeted way''.
It is understood the bank believes the market in the US for property loans is reasonable, allowing the bank to offload some of the better assets.
The loan in Chicago was given for a building on West Washington Street, and a group of 100 investors, many of them Irish, are believed to be among the owners. It is understood the Irish investors were put together by Quinlan Private Capital, said the 'Crains' report.
Forecasts for the US economy, meanwhile, are mixed.
Anglo said earlier this week: "A meaningful recovery in the US property market will require a further acceleration in economic activity and the avoidance of a 'double-dip' recession''.
The bank disclosed it had impaired loans of €34.5bn at the end of June, and €8.8bn of loans described as "past due'', but not actually impaired.
Ireland accounted for 73pc, while €1bn in US loans were "past-due". The bank sends much of its distressed loans to a recovery management team who try to resolve the underlying issues.
This unit has the power to restructure loans and it can often be involved in Anglo taking over distressed businesses too.