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The potential sale of loans to vulture funds such as Cerberus, Lone Star and Goldman Sachs is ongoing, with both AIB and Permanent TSB announcing possible loan sales this year, and AIB in particular stating that it “can’t rule out” the sale of farm loans.
Ulster Bank has already sold a loan book worth €125m of farmers’ loans to the US vulture fund Cerberus, a loan sale which represented 5% of Ulster Bank’s total loan book.
It was thought by some that vulture funds would provide flexibility and write down debts where banks would not.
Upset
But a number of farmers with Ulster Bank loans now held by Cerberus have contacted the Irish Farmers Journal to express their upset and frustration with the vulture fund, and report that they refuse to negotiate on debt.
A spokesperson for Cerberus told the Irish Farmers Journal: “Consensual resolutions are always our preference and account for the overwhelming majority of our outcomes.”
Minister for Finance Paschal Donohoe has given a commitment to work with Fianna Fáil to introduce legislation to increase the regulation of vulture funds.
On Wednesday, the IFA ramped up its call for legislation, given that a number of farmers are currently battling to retain their family farms.
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