Thursday 13 December 2018

'PTSB is only the first' - minister urged to act on home loans purge

Photo: Collins
Photo: Collins

Gretchen Friemann

Permanent TSB's decision to offload billions of euro worth of owner-occupier mortgages has fuelled expectations AIB will follow suit.

But few analysts predict AIB will resort to a purge of home loans on the same scale as PTSB.

PTSB, still 75pc owned by taxpayers, shocked the market this week when it emerged efforts to mop up its balance sheet were far more drastic than anticipated.

It involves the disposal of some 20,000 impaired residential mortgages. The Government has been warned any delay reacting to the plan will leave families at the mercy of vulture funds.

Fianna Fáil public expenditure spokesperson Dara Calleary called on the Government to act now.

"PTSB is only the first. Family farms and family homes will be sold with no regard for those living in them," he said.

Officials in the Department of Finance said Finance Minister Paschal Donohoe was conscious of the bank's need to continue on a path to recovery after its 2011 bailout.

A spokesperson for the Department of Finance said mortgage holders would have the same rights regardless of who owns the loan and that the bank had to address a high number of non-performing loans.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business