PTSB enters into a complex agreement to transfer 1.3 billion euros of bank mortgages to "securitization"

Permanent TSB has agreed on a complex agreement to transfer 1.3 billion euros of mortgages out of the bank and to a so-called securitization, while borrowers had already entered into debt settlement agreements. restructuring with the bank largely owned by the state.

In all, about 6,272 borrowers are affected. Almost all of the debt is secured on the principal residences of the borrowers.

This includes thousands of so-called split mortgages – the borrower and the bank having agreed that some of the debt would be managed and the rest would be parked for an agreed period of time.

The bank says that the terms of the existing restructuring agreements will not change, but the mbadive transfer of home loans that borrowers have committed with their lender after accumulating arrears will certainly be controversial.

The bank had withdrawn the same loans from a previous sale, after a political upheaval, but the European Central Bank (ECB) regulators are putting a lot of pressure on it to reduce its stockpile. doubtful lending to the euro on average of 4%. .

As part of the transaction announced by Permanent TSB, the loans will be managed by Pepper after a transfer date of approximately six months from now.

Prior to the new agreement, 16% of TSB's permanent borrowings were clbadified as impaired. It will now fall to 10pc.

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