Credit Unions lose out as Govt protects banks says Smith

Fianna Fáil Tipperary Cllr Michael Smith, says banks are continuing to be protected by the Government, which could result in Credit Unions losing millions in lost deposits. Cllr Smith said Credit Unions in Ireland could lose over €13 million in deposits with the liquidation of IRBC, formerly Anglo-Irish bank.

Fianna Fáil Tipperary Cllr Michael Smith, says banks are continuing to be protected by the Government, which could result in Credit Unions losing millions in lost deposits. Cllr Smith said Credit Unions in Ireland could lose over €13 million in deposits with the liquidation of IRBC, formerly Anglo-Irish bank.

“Only the first €100,000 in deposits are protected under the terms of IRBC’s liquidation. In many cases Credit Unions invested over and above that amount and now they may lose the remainder of what they invested. This is remarkably similar to what happened in Cyprus where deposit based investments were lost.

“It is ordinary citizens throughout Tipperary that have saved their hard earned money over several years that stand to lose over this.

“Credit Unions have already restricted the amount of money they can lend to its customers, this is having a direct effect on the ability of SMEs to borrow and expand their businesses.

“Credit unions provide essential diversity within the financial services industry. I believe that the volunteer and community ethos of the Credit Union movement has been at the heart of its success and this should continue.

“There are many communities around the country where people fear Government policies will lead to the closure of small rural schools, Garda stations and Post Offices. People will not want a question mark put over their local credit union as well. The Government must treat Credit Unions as a special case and ensure deposits are not lost. The very future of hundreds of Credit Unions could be at risk unless some respite is provided.”