No bail-out needed for Wexford CU
WEXFORD CREDIT Union won't need a bail-out.
That's the reassuring news from the institution this week as concern grows about the future of some credit unions in Ireland.
An estimated 50 of the country's 400 credit unions are in serious difficulty.
Their problems have arisen as a result of an inability to provide a sufficient financial reserve as required by law.
Under new regulations, a credit union must reserve not less than 10% of operating funds to protect members' savings and guard against the risk of unforeseen losses.
Some credit unions are not meeting the requirement but Wexford Credit Union is not one of them, a spokesman confirmed this week.
' We are at 11% reserve. We have performed very well this year,' he said.
'People are saving strongly and our borrowings stayed up, in line with our expectations,' the spokesman added.
In fact, the credit union will be in a position to pay members a dividend for 2011.
The amount will be decided at the agm in December.
Last year, for the first time in its history, Wexford Credit Union was unable to pay a dividend after absorbing a major loss from an Anglo Irish Bank investment.
' Wexford is definitely not on the concern list,' explained the spokesman. 'It is in the top 10 performing community credit unions in the country.'