The sale announced by Ulster Bank last month sparked concern among farmers, small business owners and distressed mortgage borrowers all of which have loans in the €300m loan sale.
Ulster Bank defended the move, arguing it would strengthen the bank but Fianna Fáil finance spokesperson Michael McGrath called for the sale to be “urgently” frozen until the Dáil has a chance to review it. Mr Creed is now set to thrash out farmers’ concerns in a meeting with Ulster Bank chief executive Gerry Mallon in three weeks.
The Cork North West TD said he fully understood farmers’ concern over the prospect of their loans being sold to so-called vulture funds which he described as a “worrying development” for anyone in such a position and pledged to raise a number of issues with Mr Mallon.
“I have arranged a meeting on June 29 with the new CEO of the bank in question, Mr Mallon. I will raise all of the issues that affect farmers, including credit and the sale of loans… In many respects, these bad debts arise from off-farm investments rather than investments involving matters inside farm gates. That is a specific issue which I will raise with the CEO,” Mr Creed said.
Separately, Davy Stockbrokers analysts said they believed political concerns over mortgage rates being charged by Irish banks are “overdone”. They added that “intensifying competition” in the mortgage market would drive rates lower for borrowers.