Lloyds Banking Group is looking into the possibility of selling off loans worth around €650 million ($840 million) that it is holding in the Irish real estate market.
That is according to an insider with knowledge of the major British financier's plans, who has today (19 March) told Bloomberg the company is eager to withdraw from a sector that has struggled badly throughout the global economic slump.
The lender is likely to have to accept a loss on its initial investments on these assets but is willing to do so, the source noted.
In 2010, Lloyds began the process of downsizing and closing the Irish unit it acquired under the terms of its previous takeover of HBOS and its most recent annual report showed that more than 90 per cent of its commercial real estate portfolio in the nation is impaired.
Last week (12 March), the organisation revealed it is planning to raise around $595 million by selling part of its stake in wealth management group St James's Place.
By Tony Aynsley