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As the Government plans to sell its 25% stake in AIB by floating on the stock market again, AIB is to tackle its bad loans problem by ramping up loan sales and repossessions.
This may signal the sale of some loans including mortgages to overseas buyers, or “vulture funds” as they have become better known.
Included in the sale may be some agricultural-related loans, which could result in an increased level of repossessions against borrowers who refuse to engage with the bank. This is part of the plan to create and increase investor appetite in the bank ahead of the planned flotation.
In recent years, AIB has slashed the level of bad loans from €29bn to €8.6bn.
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