Ulster Bank has clarified that the 31 March deadline is now a date for reply rather than a date of a proposed loan sale.

As exclusively reported by the Irish Farmers Journal, Ulster Bank is continuing its plans to offload a section of its distressed loan book.

Ulster Bank had told customers in debt management by phone that they had 30 days, until 31 March, to repay, refinance with another lender or potentially have their loan sold to a third party.

The Irish Farmers Journal can now reveal that the 31 March deadline was never the date of the proposed loan sale, rather a date Ulster Bank is looking for a reply to the chosen option of repay, refinance or see their loan sold.

It is understood that 75% of the potential loan book sale would comprise loans seriously impaired and in-debt recovery proceedings for the last number of years. The remaining 25% of loans are understood to be in a debt management unit, a step before this.

Ulster Bank is adamant that it has not moved on these customers as a result of falling dairy prices or falling farm incomes in general. The bank has also given the commitment that it will look at each customer included in the list on a case-by-case basis. It is encouraging customers who feel they have been included in error to contact the bank directly.

If loans are included in any loan sale, current account banking facilities will also be withdrawn. However, like all banks, Ulster Bank must give 60 days’ notice of closure, as outlined by the consumer protection code.

The IFA met Ulster Bank last week to express its dissatisfaction at the poor communication and criticised the bank’s strategy of packaging up farm loans with good farm asset security to make a more saleable loan portfolio for vulture funds.

Listen to a discussion of current financial worries on farms in our podcast below: