Lending power of Enniscorthy Credit Union hit by restrictions
THE LENDING power of recession hit Enniscorthy Credit union has been restricted by the Financial Regulator, officials at Abbey Square have confirmed. But savings held by the organisation remain completely safe, manager Tony Ennis stressed last week.
Enniscorthy is one of more than one hundred credit unions (of a total of 410) which have been made subject to stiff lending restrictions imposed by the regulator amidst reports that the credit union movement does not have enough money in reserve. However, the manager stressed that some loans will still be made to members.
'It does not mean that all loans have stopped,' said Tony Ennis in a statement. 'In fact Enniscorthy Credit Union is in a strong position to provide loans to members, subject to appropriate assessments being complete.'
He stressed his belief that no credit union anywhere in the country will be forced to close and that the guarantee of security for savings up to €100,000 remains in place. However, news of the tighter regime is sure to come as bad news to members looking for money to pay for Christmas.
Enniscorthy Credit Union has been affected by the fact that some members have proven unable to pay back money lent during the boom. The credit union has been increasingly obliged to take court action to recover outstanding money.
'We do not exist in a bubble and outside factors do impact on us,' stated the manager. 'It is a cliché to say we live in challenging times, and of course our movement is not immune from the financial difficulties which face our members every day.'
It is understood that the new restrictions have put a limit on the amount of money that may be handed out in new loans in any month.