Cost could have been higher
THE cost of protecting the savings and loans of Newbridge Credit Union could have been even higher.
The 36,000 members of the Kildare credit unions will now have their accounts handled by Permanent TSB.
Some €53.9m in taxpayer funds are to be given to the bank to fund the takeover.
But it has emerged from documents presented to the High Court that the original deal to have Newbridge merged with neighbouring Naas would have cost €69m in taxpayer funds.
The Irish Independent reported in September that if this merger went ahead it was likely to cost €70m – a fact denied by the Department of Finance at the time.
Director of credit institutions and insurance supervision at the Central Bank Fiona Muldoon explained yesterday that the higher figure was due to the fact that it would have cost a small credit union far more to take over the loans and savings of a rival than a bank.
The same Irish Independent report in September first revealed that the attempts to push Newbridge Credit Union into a merger with its neighbouring lender Naas had hit the buffers.