ANGLO PREPARED TO CARRY €1BILLION IN LOSSES ON QUINN LOANS
Anglo Irish Bank is preparing to write-off €1 billion on the €2.8 billion it has loaned the Quinn family, the Sunday Business Post has reported. The newspaper’s lead story said the bank expected to lose “at least” that amount on loans to the Quinns.
Anglo has already written off €350 million of loans to ten investors who bought some of Quinn’s shareholding in the bank in 2008 – that would bring the state bank’s losses arising directly and indirectly from Quinn investment to €1.3 billion.
News of the provision comes as Anglo continues to try to strike a deal with Quinn to recoup at least some of its loan. However, with administrators now controlling Quinn Insurance, other buyers are also circling, including insurance industry groups and private equity investors. Crucial to any sale is the re-opening of the Quinn Insurance business in the North and in Britain to new customers.
The Financial Regulator is expected to clear the way this week to allow this to happen after accepting a business plan by the administrators. Senior Northern Ireland politicians are understood to have lobbied in Westminster for Quinn Insurance to start full operations in the North and in Britain. The company will not be able to operate in certain markets but it will be allowed to write motor and commercial policies.