Ireland's permanent TSB to resume deleveraging next year - source
DUBLIN Oct 30 (Reuters) - Ireland's permanent TSB will resume a deleveraging plan agreed under the country's bailout terms next year, including the sale of some of its 6.8 billion pound ($10.9 billion) UK mortgage book, a source close to the process said on Wednesday.
The state-owned mortgage lender agreed to shed almost 16 billion euros in assets via disposal and run-off as part of the 85 billion euro EU/IMF bailout that is set to end later this year, but halted the UK sale last year as it finalised a restructuring plan.
PTSB, which has since been separated from its more profitable life insurance arm, submitted a revised plan to the European Commission in August and its chief executive said he expects a ruling on it by November or December.
In the meantime, the lender, which has split itself into a 'good bank', an asset management unit and a non-core division, will prepare the sale of parts of the 10 billion portfolio assigned for run down.
"They are looking at selling tranches of loans from that collective non-core book beginning in the first half of next year," the source told Reuters. The bank declined to comment.
Bank of Ireland and Allied Irish Banks, Ireland's other surviving domestically-owned lenders which, unlike PTSB, were granted the status of "pillar banks" by the government, completed their deleveraging ahead of the end-2013 deadline.
As a result, Bank of Ireland has cut its loan-to-deposit ratio to 121 percent and AIB to 106 percent compared to the 157 percent permanent tsb reported at the end of June, though that was down from 248 percent at the end of 2010.
The bank's original deleveraging plan, set out by the country's central bank in March 2011, saw the ratio falling to 122 percent by the end of 2013.
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