166 IBRC Loans Had Interest Rates Below 1%



Former CEO of the Irish Bank Resolution Corporation, formerly Anglo Irish Bank, Mike Aynsley with the Anglo sign on Stephen’s Green

RTE reports:

“New data shows that a total of 166 Irish Bank Resolution Corporation commercial loans accounts were charged an interest rate of less than 1%. In a written reply to Fianna Fáil finance spokesman Michael McGrath, the Finance Minister said IBRC’s Special Liquidators confirmed that accounts with a rate of less than 1% were mainly related to distressed loans.”

“This was where the loan was restructured or where the borrower was in the liquidation or administration and the prospect of any future recovery was “remote”. Today’s data from the Finance Minister also shows that 920 accounts at the bank were charged a rate of between 1-1.99% on their loans. These loans amounted to €399m.”


166 IBRC loan accounts charged rate of less than 1% (RTÉ)

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27 thoughts on “166 IBRC Loans Had Interest Rates Below 1%

  1. phil

    We continue to find that the system is totally rigged in favour of a few thousand people, ye we cant find out who they are because they are protected by privacy laws , and the more we find out the more excuses we hear, but still no change

  2. Rob_G

    I guess that kind of makes sense – as in, if there is someone who owes the bank millions and millions of euro, and is at risk of being declared bankrupt, the bank will probably want to charge them a rate that will leave them less likely to go under and leave the bank for lurch for all of the debt.

    1. Clampers Outside!


      what if you’re a billionaire and have loads of money to pay loans and a good (so, it was said) record of doing so….. should that person’s business be given the same treatment, and low rate… and should that person be allowed expressly request in a “verbal agreement” that the same preferential treatment should be extended to that person’s personal banking….

      Well, on both accounts – business & personal – I don’t think so….

    2. collynomial

      That’s not really how interest rates work, and if that was the strategy that is terrible banking. The interest rate should encapsulate the cost of the bank giving out the money and price in the risk of default. That is a component of the interest rate is an insurance premium to the bank that the borrower is not going to repay their loan. That means the riskier the borrower the higher the rate should be.

    3. scottser

      the old adage is true – you owe the bank 10 grand it’s your problem, owe them 10 million and it’s the bank’s problem.

    4. Atticus

      In that case anybody having a problem paying their mortgage should be given a 1% interest rate on their loan.

        1. Atticus

          Kind of, but not quite. An amount is parked at 0% interest and the rest is paid at the standard interest rate. Eventually the parked has to be paid, or in other words, kicked down the road.

    5. Frilly Keane

      All of ye

      The low interest rate should encapsulate a low risk

      High rates n’ plilage levels of charges = High Risk

      Like odds at the bookies

  3. tucker

    166 IBRC loans had interest rates below 1% – 166 loans, not 166 customers.

    And many more loans at rates of less than 1.99%.

    How many of these loans were [redacted]’s?

    1. Clampers Outside!

      Precisely! Wasn’t it said that he’d no problem servicing his loans, so if he did, why the preferential treatment….

      I’ll happily be corrected if I’m wrong on this.

  4. Owen C

    There’s three reasons to have a low margin on the load:

    1. The borrower is extremely high quality and therefore very low risk of default (its possible [redacted] falls into this category)
    2. the borrower is distressed and barely able to pay interest on the loan, so no point in charging high level of interest (accounting rules eventually mean you can’t even count the unpaid interest as a real claim). Doesn’t seem likely that [Redacted] is in this category, his issue was probably more about refinancing than repaying/servicing.
    3. Believe it or not, but many loans are used as mild loss leaders (or not really profitable after capital charges etc) for other more lucrative ancillary business like interest rate derivatives, FX, advisory fees, access for wealth management products to senior management of the borrower, capital markets advisory/fees, access to cheap deposit funding from the entity or related entity. Its my guess this is where [Redacted]’s low margin loans come from, given his expanding overseas business and large personal wealth of him and his other investors/management.

    1. Rob_G

      – this.

      I was always a little surprised at the massive furore that surrounded D-to-the-‘O-B’s interest rate – yes, it’s shitty that the financial world if weighted in favour of people who are already massively wealthy, but hardly surprising, surely?

    2. notlucas

      Shush Owen, don’t you know you have to fit in with the broadsheet paranoia script. Stop making sense. [Redacted] is obviously evil and we’re all just hypnotised by his wealth and (not allowed to say it…) success. Come on, wake up sheeple, there’s obviously no reasonable explanation for things other than the little guy getting screwed.

  5. Frilly Keane

    Christ t’night
    Is it any wonder


    Between this crowd’s 1% for their butties
    And the BoIs AIBs whatevers staff rates …..

    We’re hardly ‘wans t’be pointing fingers at the lads in Greece.

  6. Truth in the News

    What were IBRC borrowing the money at, or did they use the taxpayers
    where is Duke’s in all of this in his pin stripe suit, after how Anglo Irish
    was run now this, and the likes of Noonan out in Brussells trying to screw
    Greeks, and he can’t mind his own business at home.

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