There could soon be bad news for AIB mortgage holders as the bank’s new chief executive Colin Hunt revealed that the bank may sell further non-performimg loans this year.
According to RTÉ News, the news of probable sale comes as Mr Hunt addressed an Oireachtas Committee on Finance this afternoon.
Speaking before the Committee, Mr Hunt said that the bank is now in position where it must reduce its amount of non-performimg and high arrears loans.
Although he stated that the sale of non-performimg loans have been gradual in recent years, he reiterated that it was time to sell off the loans in order to sustain the bank’s viability.
He added that the accumulation of non-performimg loans clearly inhibit banks whose primary function is to lend to the economy.
AIB’s decision comes after it recently announced that it was to sell of €1bn worth of non-performimg loans.