Dáil Éireann Debate, Tuesday - 16 April 2013
215. Deputy Dara Calleary asked the Minister for Finance the supports available to credit unions that invested in good faith in Anglo Irish Bank, latterly Irish Bank Resolution Corporation and who now owing to the liquidation process invoked, have lost the money invested; if he intends to intervene on their behalf; and if he will make a statement on the matter. [15976/13]
View answerThese investments by credit unions referred to in the question had a structured deposit element which is covered by the Deposit Guarantee Scheme (DGS) for the first €100,000. However, at the time credit unions purchased this product there was no additional guarantee by the State and as such they are ranked as unsecured creditors in the IBRC liquidation process. Credit unions, as part of their regulatory requirements, 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 credit union representatives on this matter and the credit unions affected have been advised to deal with the Special Liquidator.
