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Ulster Bank loans sold

ULSTER Bank and its parent company Royal Bank of Scotland are set to take a financial hit of more than €4.5bn after agreeing yesterday to sell a huge property portfolio.

RBS, which is majority-owned by the British government, is to sell the Project Aran portfolio of mostly Irish loans to US investor Cerberus Capital Management for €1.4bn.

That is about 76pc below the par value of the loans, which were originally worth as much as €6bn.

The deal is by far the biggest Ulster Bank has done as it seeks to offload billions of euro in bad loans it made during the Celtic Tiger.