Reports that Permanent TSB loan book is to be split up

Wednesday 25 April 2012 20.17
The agreement of the Troika would be needed to split Permanent TSB's loan book
The agreement of the Troika would be needed to split Permanent TSB's loan book

Bloomberg news agency reports that Permanent TSB bank is preparing to split its mortgage book.

The loans would be split into so called good bank and bad bank units.

The move would require approval from the EU/IMF troika, which finishes its sixth review mission tomorrow.

Determining a future path for PTSB - once the country's largest mortgage lender - is a target in the troika memorandum of understanding with Ireland, with a deadline of the end of April.

Irish Bank Resolution Corporation has expressed an interest in managing portfolios of tracker mortgages from other banks like PTSB and AIB.