I propose to take Questions Nos. 58 and 61 together.
I am advised by the Central Bank of Ireland that certain tracker bonds sold to credit unions which were liabilities of IBRC at the time of the liquidation have a structured deposit element which is covered by the Deposit Guarantee Scheme for that element of the product. As a result the first €100,000 of any claim from these depositors is covered under the DGS. The bond itself is not covered by the ELG scheme as it predates that scheme.
I understand that the total amount of Credit Unions' investment in the bond is of the order of €15 million and that 16 credit unions may be affected. As part of their regulatory requirements, credit unions are required to maintain realised reserves for the purpose of absorbing unexpected losses, including from unguaranteed losses. This should be the first line of defence in such circumstances. Officials from my Department have met with the Irish League of Credit Unions on this matter and the credit unions affected have been advised to deal with the Special Liquidator.
The Registrar of Credit Unions at the Central Bank of Ireland is the independent regulator for credit unions. The Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members. It is a matter for the Registrar to engage with the credit unions affected in that context.