Permanent TSB is to take over troubled Newbridge Credit Union following the approval of the High Court. At a late-night sitting last night, the High Court agreed to the transfer of the loans and savings of the Kildare credit union to the bank.
The credit union was at risk of going into liquidation if the transfer had not been approved.
It is the first time a credit union has been taken over by a bank in Ireland.
There will be no disruption to customers and their savings and loans will remain with the credit union. Its office was expected to open for business as usual this morning. Some €53 million will be transferred to Permanent TSB to help deal with the credit union’s problems.
The money will come from a fund set up to deal with credit unions in difficulties. Credit union savings are State-guaranteed up to €100,000.
Special manager
Newbridge Credit Union had been in difficulty since 2008 and a special manager, appointed by the Central Bank to help deal with the problems there, is expected to be discharged.
Formerly owned and controlled by its members, the credit union will now be in the full control of the bank. Early this year, members and supporters of the credit union had opposed plans to merge the business with Naas Credit Union.
In a statement last night, the Central Bank said its priority at all times is the protection of members’ savings and the maintenance and financial stability of credit unions.
The Central Bank has directed 15 mergers of credit unions over the past three years. But earlier at the weekend, the board of Naas Credit Union voted to reject the merger.
