We acted prudently, say credit union bosses
THE directors of Newbridge Credit Union, who have been deposed after the Central Bank took control, have defended the way they ran the co-operative lender.
And they told the 38,000 members of the credit union that they had decided against taking a legal challenge to the appointment of a special manger.
Central Bank regulator James O'Brien persuaded the High Court last month to have accountants from Ernst & Young take over the running of the lender.
It is understood the credit union backed a number of commercial lending deals during the property bubble that have since gone sour. But now the directors claim the credit union was run prudently.
In a statement the board said many comments made about the lender were inaccurate and sensationalist.
"The simple truth is that almost 90pc of our loan book comprises personal loans for home improvements, education, holidays, cars, medical expenses, etc," the statement read.
"In addition to normal personal loan provisions, additional security and significant provisions are also in place in respect of all non-personal loans (small business, bridging/housing and property, etc) and therefore these present no risk to the viability of our credit union."