AIB transfers €9.3bn loans to Nama

AIB has transferred an additional €9

AIB has transferred an additional €9.3 billion in loans to the National Asset Management Agency, at an aggregate discount of 59 per cent.

The loans cover 217 customers, the bank said today.

AIB has already moved €9.2 billion in loans to Nama, meaning a total of €18.5 billion has been transferred to date.

A spokeswoman for AIB said that the bank did not yet know how many more loans would be transferred to Nama or the scale of the loans involved.

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The Government dropped the €20 million threshold for land, development and related loans under last month's agreement with the European Union and the International Monetary Fund, bringing another €16 billion in loans into Nama from AIB and Bank of Ireland.

AIB had previously planned to transfer almost €20 billion in loans to Nama but this will increase substantially following the change. The bank has about €4.4 billion of eligible loans in the €5 million to €20 million range which will be moved to Nama.

It is not know what total land and development loans of less than €5 million each are at the bank.

Although the Central Bank imposed new capital core tier 1 ratios of 12 per cent for Irish banks, it said it wanted AIB to maintain a ratio of 14 per cent to cover future loan losses.

The bank has seen its deposits decline by about €13 billion since the start of the year due to concerns about the financial difficulties of the Government and the banking system.

Some €12 billion were withdrawn, mostly by institutional and corporate depositors, since the end of June.