Credit Unions now have a double protection compared to the Banks.

Media Release: 25 September 2008

(Media Release: 25th September 2008)

— Credit Unions now have a double protection compared to the Banks

— They have the €100,000 savings guarantee announced by the Minister for Finance

— They also have the backing of their own unique €110 million fund

Kieron Brennan (CEO, ILCU) today welcomed the Government’s announcement that it will guarantee savings in Irish credit unions, building societies and banks up to €100,000.

While welcoming the Minister’s intervention Kieron Brennan confirmed that the Irish League of Credit Unions’ own Savings Protection Scheme, covering its 521 member credit unions, now stands at over €110 million.

The Savings Protection Scheme (SPS) owned and operated by the Irish League of Credit Unions was established by them in 1989 to protect the savings of ILCU credit union members in Ireland – North and South.

The SPS Fund is available to proactively intervene to protect members’ savings by making available financial assistance to help any credit union which may experience difficulties. Since its inception the occasional provision of financial assistance from the SPS to a small number of credit unions has ensured that no member’s savings have ever been jeopardised.

The SPS may offer funds to affiliated credit unions to allow them trade out of any difficulty they may experience. If this were not possible - and in the unlikely event that a credit union became insolvent or defaulted financially so as to become unable to repay savings to members (deposits and shares) - the state guarantee of €100,000 would be available.

Kieron Brennan said “The average credit union member saving/deposit account is €4,620.00”.

He also pointed out that ILCU credit unions have assets of €15.1 billion.

He added “Credit Unions want to be proactive and are not content to rely on a guarantee which only comes into play after collapse. Our own SPS fund is there to prevent Credit Unions ever having to call on the guarantee”.

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