Tuesday, 2 July 2013

Questions (117)

Pearse Doherty

Question:

117. Deputy Pearse Doherty asked the Minister for Finance his views on the issue of the losses accrued by credit unions because of the liquidation of Irish Bank Resolution Corporation; the way these losses will affect members of the credit union movement; and if he is in contact with the credit union movement to discuss these losses. [31876/13]

View answer

Written answers (Question to Finance)

I am not in a position to discuss the specifics of any customer accounts in IBRC (in special liquidation). However, I am advised by the Special Liquidators that there are certain tracker bond products which were sold to a number of Credit Unions which were liabilities of IBRC at the time of the liquidation. I am further advised that these products have a structured deposit element which is covered by the Deposit Guarantee Scheme for that element of the product. As a result the first €100k of any claim from these depositors is covered under the DGS Scheme. I have been advised that the Special Liquidators are aware of a number of depositors who fall outside the eligibility criteria for the ELG Scheme due to the nature of the investment product. Unfortunately, if a deposit is not eligible under the ELG scheme the depositor will rank as an unsecured creditor in the liquidation. At the time that this investment product was purchased by Credit Unions, there was no additional guarantee provided by the State. It was always the case that the ELG scheme covered only those liabilities which were entered into during the issuance window.

Question No. 118 answered with Question No. 88.
Question No. 119 answered with Question No. 78.