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AIB has agreed a €1bn sale of non-performing loans (NPLs) with Everyday Finance, as part of a consortium with Everyday and affiliates of so-called vulture fund Cerberus Capital Management.
The bank confirmed the loan sale included “limited agriculture exposure” but refused to comment on exactly how many farms were involved in the sale.
Around 2,200 NPLs are included in the loan sale, with 95% of loans over two years in arrears and 80% over five years in arrears.
An AIB spokesperson said the bank made “extensive” efforts to engage with customers.
The bank stated it will now contact customers to tell them that their loan was being transferred.
A Sinn Féin-sponsored bill to prevent the sale of loans to vulture funds without homeowner consent has been criticised by the Department of Finance.
Officials from the Department told a Joint Oireachtas Committee on Finance that the bill would be unconstitutional and not protect homeowners from future vulture fund sales.
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