More banks to copy AIB split plan

More Irish banks will begin writing down debts of their troubled mortgage holders, following AIB’s introduction of a limited split mortgage scheme according to ratings agency Fitch.

Fitch analyst, Ketan Thaker, said the perfect storm of underwater mortgages and Central Bank targets mean that Irish banks have little choice but to write off some debt.

“The level of distress in the Irish housing market coupled with the Central Bank’s introduction of targets for banks to find long-term solutions for the majority of their distressed borrowers has made some form of debt writedowns inevitable.