Financial Services

Over 60% of credit unions offering payment holidays

Credit union managers concerned over lack of borrowing appetite, survey shows

As many as 82 per cent of credit unions in Connacht have introduced payment breaks. Photograph: Colin Keegan/Collins Dublin.

Mon Jul 6 2020 - 08:45

More than 60 per cent of credit unions are offering payment holidays, a survey carried out on behalf of the Irish League of Credit Unions (ILCU) has found.

The survey, which sought the views of credit union managers, found that 80 per cent believe that rescheduling loan repayments is the measure that can most assist credit union members.

As a result, 62 per cent of the outlets surveyed said they’re offering payment holidays. As many as 82 per cent of credit unions in Connacht have introduced payment breaks.

Challenges ahead

But challenges lie ahead, the survey found. Some 74 per cent of managers found that a lack of borrowing appetite will be troublesome in the months ahead, while 68 per cent cited operating costs as a challenge.

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"From the perspective of the long-term viability of credit unions themselves, it is equally clear that Covid-19 and its effects . . . will present challenges in the months ahead," said ILCU president Gerry Thompson.

“However, a new Government provides the opportunity for it to now work with the credit union movement to implement constructive policies to safeguard the long-term future of credit unions across the Republic.”

The survey took place between June 11th and 23rd with 133 respondents.

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