Farm loans included in Ulster Bank loan sale to Permanent TSB

Some farm loans are included in the proposed Ulster Bank loan sale to Permanent TSB.

On Friday, Ulster Bank announced it had entered into a non-binding memorandum of understand (MOU) with Permanent TSB for the sale of its performing non-tracker mortgages, performing micro-SME loans, its asset finance business and 25 of its 88 branch locations across the country.

Ulster Bank told the Irish Farmers Journal that some agricultural customer loans are also included.

The value of these loans and the amount of farmers affected is not known at this stage.

Due diligence

“The potential sale contemplated by the MOU remains subject to due diligence, further negotiation and agreement of final terms and definitive documentation, as well as obtaining regulatory and other approvals and satisfying other conditions.

“The proposed sale may not be concluded on the terms contemplated in the MOU or at all,” Ulster Bank said.

Last month, the bank announced that it would be selling €4.2bn of its corporate and commercial loans to AIB, with a number of these loans confirmed to be farm loans.

Changes ahead

While there is no change for customers today, Ulster Bank said that over the coming months it will make a series of changes for its customers as it implement a phased withdrawal.

“We will proactively contact customers when they need to move bank and/or close accounts. We will ensure that customers have ample time/notice periods, as well as the support they need to complete the process.

“As part of this, our commitment remains that we will not close any branches in 2021, and we do not anticipate closing any branches in H1 2022.

"Branches will continue to play an important role and in H2 2022 we will begin to phase out traditional counter/cash services to concentrate on in-person support to move bank and/or close accounts,” it said.

Branches

The 25 Ulster Bank branches set to be acquired by Permanent TSB are: