Ulster Bank must protect farmers – IFA

ULSTER Bank cannot sell its loan book to a vulture fund and leave 10,000 farmers with borrowings from Ulster Bank high and dry.

That was the view of IFA President Tim Cullinan following news that NatWest will wind its bank down as COVID-19 continues to hit Ulster Bank’s bottom line.

“It’s estimated that there are 10,000 farmers with borrowings from Ulster Bank, and a further 10,000 availing of current account facilities,” said Mr Cullinan.

“Ulster Bank must make a commitment that it will not to sell its loan book to a vulture fund that would leave these farmers completely high and dry.”

He added that the Government must also play its part in ensuring that this does not happen. IFA Farm Business Chairperson Rose Mary McDonagh said that Ulster Bank must first facilitate existing customers to move to another full-service lender.

“Ulster Bank must support its customers in moving to one of the other pillar banks in the State,” said Ms McDonagh. “Borrowers making repayments to a vulture fund have difficulties accessing new finance elsewhere because the fund will not release the security they hold.

“IFA has repeatedly highlighted that it’s neither appropriate, nor suitable, to transfer loans to vulture funds.”

Figures from the Central Bank for December show that Ireland has the second most expensive mortgage rates in the Eurozone, second only to Greece, with the average rate on new mortgages of 2.75 per cent.

“Ulster Bank’s departure would be another crippling blow to competition in the sector.

“Questions have to be asked of all stakeholders in the banking industry as to why the trend in reduced competition is allowed to continue unabated,” Ms McDonagh added.