More than 29,000 SME loans with AIB in trouble
It emerged that over 29,000 small and medium business loans on the books at Allied Irish Bank are in trouble as SME’s find it hard to cope.
The numbers in trouble have risen sharply, even forcing an extra 200 staff to be taken on by AIB, simply to cope with these loans.
It has also emerged that mortgage holders are finding it increasingly difficult to find the money for their monthly repayments. There are 12,000 customers in arrears and the number getting into difficulty has risen in the last three months.
“The bank is seeing only “muted” demand from customers for new loans,” said an AIB source.
“Putting extra resources into working with the rising number of customers in difficulty has raised costs.”
As regards trading, the bank said customer deposits had stabilised. The bank has enough capital as a result of the money poured into it by the Irish taxpayers to meet the Central Bank’s stringent requirements.