Ex-AIB banker ‘sceptical’ over €25m loan recourse conclusions

A FORMER senior AIB banker said he is “sceptical” how anyone could have concluded the final terms of an AIB €25 million loan to businessman Philip Lynch, his family and developer Gerry Conlan to buy development lands did not involve full recourse to all borrowers.

Tom Barry, former head of AIB Corporate Banking, told the Commercial Court that most business lending by AIB, even at the height of the property bubble, was recourse lending. He did not believe AIB would contemplate a non-recourse loan for development land, including the Waterford lands.

The final AIB loan letter signed by the Lynchs’ and Mr Conlan on February 8, 2007, was a full recourse loan, Mr Barry said.