50% of transfers will be bad debt by year end

OF the € 24 billion of bad, property and other related loans being transferred by AIB Group to NAMA, nearly half will be in the bad debt category by the end of 2009.

The group in its trading statement yesterday said, by the end of the first half of 2009, €6.7bn of the loans being transferred across to the bad bank had been designated as bad debts.

And that will have risen to €10.4bn by the year end, as the NAMA process continues to unfold.