AIB plans debt writedown for certain borrowers

AIB is looking at debt writedown options to alleviate the repayment burden for certain borrowers, but is working on an affordability approach rather than blanket write-offs.

Appearing before yesterday’s sitting of the Oireachtas finance committee, AIB management representatives, including chief executive David Duffy and head of products Fergus Murphy, said that an overall write-off of all negative equity overnight would be “irresponsible” and that blanket debt forgiveness would be unfair on customers managing to repay loans

Mr Duffy said the bank is capitalised for restructuring and growth and to meet its minimum funding levels, not in order to cover borrowers’ negative equity.