The circle is complete

KBC Bank Ireland has sold a portfolio containing around €1.9 billion worth of loans non-performing buy-to-let mortgages and corporate loans to Goldman Sachs. The loan book also contains performing and non-performing UK buy-to-let mortgages.

Meanwhile…

Alongside today’s announcement, KBC Bank Ireland also issued its half-year results today, which saw it record a net profit of €115.9 million for the first six months of 2018 after tax and impairment.

Good times.

KBC Ireland sells €1.9bn of non-performing loans to Goldman Sach (RTÉ)

38 thoughts on “Pass The Parcel

  1. mildred st. meadowlark

    I feel like Ireland™ is out to make me as angry as possible today.

    I hate this country so much sometimes. I really do.

    Reply
        1. Topsy

          Absolutely. Nobody should have to payback any loans. I’m outraged that people who tried to make a quick buck with buy to let properties should be required to honour a mortgage contract.

          Reply
      1. Joe Small

        A Belgian bank is getting rid of non-performing loans after being pressured by the Irish regulator to clean up its books so it can be in a better state to handle the next crisis. We all hate banks but we should only really hate them when they deserve it.

        Reply
        1. scottser

          this is how the rich get richer and the poor get poorer though, isn’t it?

          ‘By promoting the selling of NPLs to taxpayer-funded vehicles such as publicly funded bad banks, or by passing on their risk to capital market investors in a non-transparent and unsafe way through structured debt transactions (securitisation), there is a concern that [the European] Commission’s NPL initiative will end up perpetuating the vicious circle that develops when poorly-run banks are kept in business with taxpayers’ money.’

          http://www.finance-watch.org/press/press-releases/1583

          Reply
  2. Christopher

    Good! The assets secured on performing loans should be repossessed and sold on the open market. The whole point of NAMA was to stop that from happening so that normal people weren’t able to snap property up at bargain prices when it was below the level that the government wanted prices to be at.

    Reply
  3. BS

    statement: Ireland is an absolute kip to live in unless you earn 100k plus, inherited or were gifted a house by parents/relative, or had the money/credit to buy a house at well under market value in the recession. you need to be on a combined or single income of at least 60k to afford to rent in dublin city (because you have to work in dublin city to be on 60k to afford to live there) and still have a comfortable, reasonable quality of life.

    convince me otherwise

    and this is only the housing situation in ireland…

    Reply
      1. BS

        If there was a multi national or irish IT firm in Limerick that would pay the same wage as i would get in dublin i would be happy to move to somewhere like that….but unfortunately Dublin is where the tech jobs are (mainly, i know there are some in cork and limerick)

        Reply
        1. scottser

          that’s the point – you don’t have to get a dublin salary to live well somewhere else. plenty of IT opportunities in a university town too.
          i lived in limerick for a while, great spot and the folks are sound.

          Reply
          1. BS

            while a house might be cheaper, the cost of living is still genreally on par with the rest of the country.

            living an hour outside limerick, you need a car – so insurance, tax, petrol, nct
            bills are the same price everywhere
            a holiday every year, or every couple of years.
            Ireland is an expensive place to live, but the necessities, like housing, motoring, and keeping the lights on is prohibitively expensive for a huge amount of people, and not just people on minimum wage, the “average” wage of 35-40k wont stretch to that now.

            While i totally agree with what youre saying, that yes you can get a cheap house, in rural ireland, it wont suit the majority of people who will work for a large company based in Dublin.

      2. Termagant

        38 grand before your get the windows done, the roof done, the plumbing and electrics overhauled. G rated so you’re going to have to redo all the insulation. Interior deco’s in a bit of a state but sure that’s optional, just go around with your eyes closed and it’d be fine. That’s a €120,000+ house in disguise, and it’s in fupping Nowhere, Co. Offaly.

        Reply
      3. rotide

        250k for a 4 bed semi D on the north circular road in Limerick City.

        That’s a damn site better bargain than the Murder Farmhouse in Offaly

        Reply
  4. the man from somewhere else

    they aren’t family homes so I can’t honestly get outraged by this. A solid practice. However if they were family mortgages I wouldn’t be in favour.

    Reply
    1. anne

      they are family homes…someone is living there.

      When are people going to realise renters are a huge cohort of people on the property market these days? like hundreds of thousands of people….I guarantee you FG will get it next election.

      Reply
  5. stephen c

    every non performing loan on an Irish banks books is a mortgage they can’t issue to people who can pay. These are all on buy to let’s , none of the Paul Murphy ‘kicking people out of their homes’ false outrage please, thats just not happening.

    Reply
    1. anne

      Surely there are renters living in them. Banks are getting massive writes offs, then the subsequent bank who buys these in bundles… Its never good for the ordinary citizen when you have concentration of ownership like this.

      Reply
      1. Rob_G

        I swear to God, you are never happy. This is literally the banks going after the greedy landlords who are still (no doubt) collecting rent on their buy-to-lets, but not paying their mortgages, are you still if-ing and but-ing.

        Reply
        1. anne

          This is not literally the banks going after anyone.. This is literally a bank bundling mortgages & selling them off for a profit.

          Reply
          1. Rob_G

            … and the institution that they were sold off will then… go after the landlords. They are not buying them for fun.

          2. anne

            And where will the renter go? How is this going to benefit anyone but the vulture funds… roll on the next recession where they can buy everything on the cheap again, once the current assets are sweated before being sold on of course.

            Stop acting stupid please.

          3. Rob_G

            So you rather, instead of any negative consequences for the delinquent landlord, he can continue pocketing the extortionate (probably) rent, not pay anything to the bank, and just keep the property… forever?

            I give up.

          4. Rob_G

            This is a genuine question – why is it, do you think, that a bank would sell its loan book at a loss to another bank? If the loans were performing, there would be no benefit in doing this. Banks only do this when the loans are completely delinquent – after all, they are selling them for pennies on the euro for what the loans are, in theory, worth. If the loans are BTLs, as in this case, many are probably from landlords who are not paying the banks, but are still pocketing the rent money.

            Seriously, people just see the word ‘banks’, and all rationality goes out the window.

          5. anne

            The figures are available.. there aren’t vast swathes of completely delinquent loans, where no payments are being made. Having some arrears is what’s mostly the case.

            Take this for example. Now fair enough you might have zero empathy for these people..but if you look at what that Vulture were trying to do & the offer they refused, it’s indicative of how they operate. 400k outstanding built up between arrears/extra interest because of arrears & remaining mortgage.

            offered over 300k cash, with the remaining 100k going to be paid off in mortgage payments, & they turn it down. Why? Because they want the lot.. Luckily the judge gave the family time to sell it themselves..

            Buy to lets have families in them also. The state are complicit in this housing crisis.

            https://www.independent.ie/irish-news/courts/glenda-gilsons-parents-lose-1-million-family-home-as-fund-refuses-final-offer-36688331.html

          6. Rob_G

            That is a delinquent mortgage. While I am sorry that those people are losing their house, I can see why a bank would not want to accept 300k from a couple that (i) owe them 400k, and (ii) own an asset worth somewhere around one million. Why should people who own a €1,000,000 asset get a free 100k that has to be paid for by every other bank customer?

            If you can’t pay your mortgage, you are at risk of losing your home – it is the whole idea behind a mortgage, it is mentioned 10 times in the paper that you sign when you are taking one out.

            See the other article on why Ireland has the highest interest rates in Europe – https://www.broadsheet.ie/2018/08/11/rate-my-rate/#comment-1993307

            – every mortgage payer in Ireland is paying for the Gilsons house currently.

          7. anne

            No, we’ve already paid..

            this is about a fund making profit.

            And they were not looking for a 100k write off.. that would be been paid back in payments. These sharks want max profits.. they are not interested in keeping people in their homes. They want in and out of this country before the next orchastrated recession..

            Peter McVerry had said he sees an avalancheof homelessness coming with these Vulture funds.

            The irish taxpayer did not bail out the banks for people to be turfed out of their homes, enabling these funds to make huge profits..

            The millions being pumped into the REITs with HAP payments is another obscenity. Why? Backhanders? Why is every thing being privatised at every opportunity.. except it’s not really privitised, it’s more socialism for the rich… tens of millions wasted going to private landlords, when it’d be much cheaper to build social housing. We’re going the route of the U.S. A poohole basically with zero protection for it’s citizens..

          8. Rob_G

            “Peter McVerry had said he sees an avalancheof homelessness coming with these Vulture funds.”

            ‘Peter McVerry…’
            ‘homelessness…’

            – in this instance, they can just sell the house to pay back the money, and then just buy another house worth 850k or 900k, I’m not sure that you picked the best example…

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