Bríd Smith appeals to Dankse Bank not to off load SME loan portfolio’s to bad debt agencies.

Brid-Smith - CopyIn an article published  in the Local News in Dublin South Central, People Before Profit TD Bríd Smith has warned that a plan by Dankse Bank to sell a portfolio of loans chiefly concerning Small and Medium Enterprises could have devastating effects for both individual firms involved and the wider economy.

The Dáil deputy has been contacted by a number of concerned SMEs who believe the giant bank is set to offload distressed loans in a portfolio to a number of bad debt agencies at a large discount. It is understood that this will result in immediate pressure on many struggling firms and could see businesses close with significant job losses.

Deputy Bríd Smith stated “I would fear that Dankse Bank’s move could have a profound impact on many of these small firms and would appeal to them to hold off any “fire sale”. We have seen what can happen in other areas where loan portfolios are sold and the pressure is for an immediate return to the new owners of the loans; foreclosures and home repossessions are happening as a result.”

“My information suggests that Dankse Bank is seeking to sell these loans to what are essentially bad debt agencies who will have no interests in helping small local firms survive.”

The Bank previously sold SME portfolios to both Bank of Ireland and Goldman Sachs.

Deputy Smith is concerned that other banks may follow suit; “There is an urgent need for the Minister for Finance to step in and seriously consider a mechanism where the State could acquire these loans with a view to insuring that these firms do not face the kind of pressure that will see businesses fail and jobs lost”.

The People Before Profit TD has organised a meeting on Friday 22 April in Buswells Hotel where representatives of a number of the SMEs will voice their concern and Deputy Smith will launch a campaign against the planned sell off.