Irish borrowers struggling to meet their loan repayments may be banned from taking vacations and face limits on how much they can spend on food under guidelines published by the country’s personal insolvency service.
Irish bankers preparing for the biggest wave of foreclosures in the nation’s history are struggling with how to dispose of the homes as the central bank pressures them to go after owners of investment properties.
Allied Irish Banks Plc, which cost taxpayers about 21 billion euros ($27 billion) to rescue, said its annual loss widened as a decline in bad loan losses failed to offset dwindling gains from buying back its own debt.
Allied Irish Banks Plc, the state- owned recipient of a 21 billion-euro ($28 billion) bailout, is easing terms on 2,000 mortgages a month, aiming to clean up its troubled loan book in time to woo new investors by 2014.
New York investment banker Carlos Abadi was among the losers when Allied Irish Banks Plc imploded, wiping out $6.3 billion of junior bonds. Two years later, he’s willing to buy the lender’s debt again.
Allied Irish Banks Plc’s Chief Executive Officer David Duffy comments on plans to win new investors in 2014, four years after the company was seized by the state, restructuring soured mortgages and rebuilding margins.