Central Bank starts credit union debt talks
THE Central Bank said it has begun consultations with credit union leaders about the best way to categorise bad debts at the lenders.
Following consultations, it plans to draw up suggestions to measure the levels of bad debts in the sector and individual credit unions.
The Central Bank is attempting to clear up the sector by forcing some credit unions to merge. It also wants to get a clear picture of the nature of debts racked up during the boom. The paper includes suggestions for the introduction of a “tiered” regulatory approach.