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AIB expects loan losses

STATE-SUPPORTED bank AIB plans to have to set aside more money for potential loan losses this year.

The bank said that there is a rising number of business and personal loans running into difficulties.

However, AIB confirmed that it had enough capital after the Government injected money into the bank earlier this year to enable it to meet targets set under the EU/IMF deal. Mortgage arrears had increased in the third quarter for both AIB and EBS.

The bank said its income was being affected by the high interest rates it had to offer to attract deposits.