Clonmel Credit Union manager Paul Davey has responded to a recent article in ‘The Nationalist’ which referred to credit unions being ‘mugged’ because of concerns over money that may have been invested in an Anglo Irish Bank (now IBRC) bond.
Mr Davey insists there is no risk to any credit union money and that the credit union remains “strong, safe and secure”.
He says “In a recent article entitled “Credit Union’s mugged” a number of misleading impressions were conveyed. The first was an overstatement of the size of the IRBC Credit Union Bond at €70m where I understand it is closer to €18m. Clonmel Credit Union clearly wish to state that it never held any bond with IRBC.
“The second non factual statement is that “many Credit Unions in South Tipperary have been put into financial difficulty” as a result of having this IRBC product. All of the Credit Unions in the catchment area reported a surplus in the financial year to 30th September 2012 and were allowed to pay a dividend to their membership by the regulatory authority. Clonmel’s surplus in 2012 was €4.8m and at the 5 month stage in the current year we are well on track for yet another strong performance in 2013.
On a general point, Credit Unions have a triple level of protection which can be called upon if required. The existing reserves which on average across all Credit Union would be 11% of the assets, (Clonmel’s reserves stand at €23m or 15% + of our assets.
The Credit Union movement has an additional fund of €78m+ known as the SPS fund which could be called upon if required.
All of this is in addition to the Government Depositors deposit protection scheme.
Clonmel Credit Union is now in its 50th year of meeting the needs of the community
“We are strong safe and secure.”