Government commits an initial €250m to bail out credit unions

[kaplan]

Having mentioned a tax payer funding requirement of between €500m and €1bn Minister Noonan is to commit an initial €250m before the end of the year.

This would appear to be the immediate funding required to stabilise seriously troubled credit unions. Will those credit unions that are to receive stabilisation funding be identified? 17 have yet to publish accounts to 2010.

During a media interview ILCU said that it had the funds to stabilise troubled credit unions which was a reference to its stabilisation fund of c€120m of which over €50m had been pledged earlier this year. It remains to be seen if this is the case - earlier this month it said that no credit unions were currently in financial trouble.

 

[Slim]

Having mentioned a tax payer funding requirement of between €500m and €1bn Minister Noonan is to commit an initial €250m before the end of the year.

..ILCU...said that no credit unions were currently in financial trouble.

Credit Unions will pay this back through a levy.

Hard to believe that the ILCU would say that when the dogs on the street know of several CUs due to be rescued or taken over.

 

[kaplan]

@ slim : During a radio interview on RTE [broken link removed] Friday 7th October last with ILCU's CEO he stated " There are no credit unions in trouble at present" and "we have no credit unions at present, let me clear about this, who are currently in financial difficulty" .

During the programme the CEO admitted that over half of credit unions have had lending restrictions imposed. He was being interviewed on Michael Noonan's comments the previous day - the reference to some credit unions about to fall down a hole and the sector needing between €500m and €1bn in state funding.

While the intention is to recoup taxpayers funds "in the medium term" by levying credit unions through a stabilisation scheme - it remains to be seen if they are eventually fully recouped.