AIB to address all mortgages in arrears within six months

AIB to address all mortgages in arrears within six months

AIB CEO David Duffy

AIB insists it will address all its home loans that are in arrears within the next six months.

The state-owned lender plans to replace existing agreements with either interest forbearance or other forbearance such as split and trade-down mortgages.

CEO David Duffy told The Sunday Times at the weekend that the bank planned to restructure up to 2,000 mortgages a month until the end of next March as it looks to deal with over 10,000 households that are currently behind on their mortgage repayments.

Mr Duffy said he would be meeting with the Central Bank this week to discuss its mortgage arrears resolution strategy.

He said: “In one year we need to be crystal-clear about where we are with restructuring households, companies and multi-connections.”

He said that within a year all distressed homeowners and small and medium-sized businesses would be in some form of forbearance programme.

Mr Duffy said AIB would write off some debts to ensure that restructured loans are sustainable for clients in the long term, However, he warned against seeing the upcoming Personal Insolvency legislation as a panacea, adding that he doesn’t see a “huge call” for it if customers and banks worked together.

“When it comes to addressing debt issues, I think people have to realise there will be an adjustment in lifestyle,” he said.

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