Taoiseach quizzed on whether credit unions will lose millions in IBRC liquidation

first_imgTAOISEACH ENDA KENNY has said it is not yet clear whether credit unions will lose “millions” of euros in the liquidation of IBRC.In the Dáil this afternoon Fianna Fáil leader Micheál Martin cited a rumour circulating in the credit union movement that credit unions could lose up to €17 million worth of investments with the former State-owned bank.The Taoiseach said the liquidator will have to analyse the situation.Martin said there were concerns that investments by credit unions would not fall under the bank guarantee scheme and so they would have to join the queue for payment along with all other unsecured creditors of the bank.Enda Kenny said the question of liability to credit unions remains to be seen. “I can’t tell you to what extent, if any, credit unions have been involved here,” he told the Dáil.Micheál Martin criticised Fine Gael and Labour for protecting senior bondholders but allowing a situation to develop which could see credit unions burned as a result of action by the Government.Separately, the Financial Times has suggested that Ireland could face a large number of lawsuits over the liquidation of IBRC in an emergency session of the Dáil two weeks ago.Read: IBRC senior executives will not get termination pay-off: Noonan > Read: Noonan: IBRC liquidation is ‘crude’ but staff in better position than most >last_img

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