Lloyds sells 4,000 Irish mortgages

Lloyds Banking Group has agreed to sell 4,000 non-performing Irish mortgage loans to Lone Star Funds, a US investment company, according to sources.

The bank is selling the assets, known as Project Paris, at a discount to their €1.1bn face value.

“Lloyds has long stated it’s deleveraging its balance sheet and will do this by reducing its non-core assets — this includes its Republic of Ireland book,” said Ian Kitts, a spokesman in London.