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Ulster Bank is to sell €100m of agricultural loans. This comes as part of a total loan book sale of €2.5bn. The agricultural portion accounts for 4% and relates to farmer customers who have distressed loans and who have been in communication with the bank in the past number of months.
The agricultural loans relate to land, on-farm investments and non agri-related investments which have been under special management for a significant portion of time.
The loans involved do not belong to typical customers. They are all in Ulster Bank’s problem debt management unit and in arrears or under specialist management for a significant period of time
The majority (86%) of the €2.5bn loan book sale relates to business in the Republic of Ireland, with14% relating to loans in Northern Ireland.
An Ulster Bank spokesperson said: "the loans involved do not belong to typical customers. They are all in Ulster Bank’s problem debt management unit and in arrears or under specialist management for a significant period of time.”
The deadline for engagement is 31 May, which effectively means that farmers with distressed loans are being asked to engage with the bank immediately with an alternative solution. It is understood the sale will take a number of months to conclude.
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