'Dangerous precedent': Ulster Bank includes agri-loans in debt sale
A number of farms in Northern Ireland have had their bad debts sold by Ulster Bank to US-based investment firm Cerberus Capital.
Around 1% of the loans which total £2bn involved farmers and other agri-businesses.
A spokesman for the bank said it confirmed the completion of the sale of 'significantly impaired loan portfolio.'
Ulster Farmers' Union president Barclay Bell said it was disappointing that agri-loans have been included in the sale.
"We understand that only a small number of farmers are involved, but I can imagine the impact this will have on those businesses and families," he said.
"If anyone affected is a UFU member, I would encourage them to contact the Union for advice and support.
Dangerous precedent
Mr Bell said his farm group had become aware that Ulster Bank was planning to sell off some of its agri-debt.
"We underlined our concern then, and urged the bank to work with farmers rather taking a hard line approach.
"Everyone recognises that farming is going through tough times and we met the banks earlier this year to explain the situation facing farmers.
"To their credit they listened and took action," he said.
In March, farmers in Northern Ireland were warned about the prospect of seeing their debt sold to a third party.
Farm groups said it would set a 'dangerous precedent' and could fracture relations between banks and the farming community.
"Everyone recognises that farming is going through tough times," said the then UFU president Ian Marshall.
"We understand that it is frustrating for banks to deal with these problems – but at the same time they have done very well out of farming in the past, and will do so again."
