Michael Creed (Cork North West, Fine Gael) | Oireachtas source

Primary responsibility for banking policy lies with the Department of Finance. Officials from that Department have been in contact with the bank in question with regard to the details of the loan sale. The Minister for Finance has stated that the sale of a loan from one entity to another does not change the terms of the contract or the borrower's rights and obligations under the original contract.

Active engagement by indebted borrowers with their lender is key to achieving a sustainable resolution, and I would urge borrowers in arrears who have not already done so to take that first step by contacting their lender directly or contacting the Money Advice and Budgeting Service, MABS, for an independent assessment of their situation and advice on available resolution options.

In regard to the consequences for agriculture, my predecessor, Deputy Coveney, wrote to the bank in early April to express his concerns. The bank replied that a low number of agricultural customers were potentially affected by the sale and that it has proactively engaged and worked with such customers. It also stated that any potential sale of non-performing SME loans would only be done after the completion of an extensive review of each customer's individual circumstances. The bank gave assurances that throughout this process it remains fully committed to supporting all of its customers, including those in the agriculture and food sectors.

In addition to this correspondence, my officials have been in contact with the bank in question on a regular basis with regard to sale of these loans. I will meet the CEO of the bank later this month and this issue will be one of the topics on the agenda.

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