The president of the Irish Farmers’ Association (IFA) says farmers holding accounts and loans with Ulster Bank need to be looked after following NatWest’s announcement of a phased withdrawal from the Republic of Ireland.
IFA president Tim Cullinan said NatWest must make a commitment that it will not sell any of its loan book to a so-called vulture fund but to banks that can offer a full service to customers.
It is estimated that 10,000 farmers having long-term loans with Ulster Bank and a further 10,000 others trading with a current account.
Mr Cullinan said: “This withdrawal has significant consequences for competition in the sector, but the first priority must be to ensure that the loan book ends up with a bank that provides a full banking service and not a faceless fund. NatWest has a moral responsibility to their customers to ensure this does not happen.”
The IFA president said that more than €2 billion has been invested by famers through scheduled loans over a 10 to 15-year period, adding that the association wants to ensure that those loans go to a functional bank so farmers can continue their business.
Ulster Bank plays a critical role in agri-lending, accounting for approximately 16 per cent of the market share in agri-customers. The bank’s exit will see the loss of 88 branches and more than 100 ATMs around the country.
Mr Cullinan concluded that the IFA believes the Government needs to ensure a low-interest rate for farmers who have borrowed as well.
LSL News.