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Saturday 17 February 2018

AIB to consider writing off debt

Colm Kelpie

Colm Kelpie

AN AIB chief has said the bank can do deals with more struggling mortgage holders this year than the State has proposed.

And the bailed-out lender would consider mortgage debt writedowns in selected cases, chief executive David Duffy said.

The bank, which has received more than €20bn from taxpayers, said 9.1pc of its residential mortgage book and 17.7pc of its buy-to-let accounts are in arrears of more than three months.

The Central Bank wants lenders to have come up with solutions for 20pc of those in arrears by July, 30pc by the end of September and 50pc by the end of the year.

At the release of the bank's annual results yesterday, Mr Duffy said it intended to do better than the targets.

"We are confident that we will meet or exceed the Central Bank restructuring targets," Mr Duffy said.

He reiterated that they wanted to keep people in their homes "wherever possible".

"That implies that they would be co-operating with us and we have been making significant efforts to reach out to customers to make contact," Mr Duffy said.

Mr Duffy said 84pc of the bank's residential mortgage book are fully performing, while 66pc of its buy-to-lets are performing.

And he said deals had been offered to 3,000 distressed mortgage customers in the last three months, including more than 1,400 split loans and 1,700 other restructurings including mortgage-to-rent and term extensions. Split mortgages allows for part of the loan to be 'parked'.

In addition, during January and February, 5,000 customers managed to pull themselves out of arrears through their own efforts or working with the bank.

AIB results: See Business Week

Irish Independent

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