Saturday 23 September 2017

Kenny says 'no depositor loses out' in credit union Anglo losses

An Taoiseach Enda Kenny
An Taoiseach Enda Kenny

Fionnan Sheahan in Seattle

TAOISEACH Enda Kenny says "no depositor loses out" on their savings as a result of credit unions being burned for €14bn by the liquidation of the former Anglo Irish bank.

The Taoiseach is in Seattle on the last day of his week-long US trip around St Patrick's Day.

 

Finance Minister Michael Noonan told the Dáil yesterday the institutions had invested in a product called the Anglo Irish Credit Union Bond 2005.

 

After the liquidation of the IBRC, their investment was only guaranteed up to a level of €100,000, even though a total of 16 Credit Unions had invested some €15 million.

 

Mr Kenny said depositors will not lose out and there is a compensation fund available.

 

"I can understand the anger. I can understand the frustration. It's important to know that no depositor will be at a loss here. That is the first thing.

 

"The second issue is of any credit union that is involved here, it is a matter for the liquidator and there is, as you know a resolution fund available to credit unions where serious financial implications arise but that would require a restructuring.

 

"It is important therefore to note no depositor loses out here. This is a matter for the liquidator and there is a resolution fund available and I support that.

 

"The fund is very extensive."

 

Mr Kenny flies home tonight and as soon as he gets back to Ireland, he heads to Meath East to canvass for the Fine Gael by-election candidate Helen McEntee.

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