The Credit Unions do not escape significant write-offs

It has recently been revealed by the Irish League of Credit Unions that they are expected to write off up to € 60 million worth of financial loans for the financial year ending on the 30th of September 2009. The write off amount equates to just under 1% of the total value of financial loans issued of € 6.8 billion but it is almost three times the previous write-off amount (€23 million) in the previous year.

The Irish League of Credit Unions have also stated 9.44% of financial loans with a total worth of € 640 million were in arrears at the end of June 2009, an overall increase from the previous three months.

In a complex review of their financial performance for the year ended 30th September 2009 , the Irish League of Credit unions has stated that it expects the number of credit unions who do not pay a dividend to members to increase to 50 while the others are set to pay a reduced dividend.

The Irish League of Credit Unions has increased their overall membership to 508 credit unions, of which 405 are in the south of Ireland. While the overall membership has increased the amount of lending has fallen as a result of a more prudent approach by the credit unions and a greater reluctance by people to borrow money.

While the Irish League of Credit Unions is provision for bad loans in excess of € 400 million, they are eager to address that whilst they do fall underneath the supervision of the Financial Regulator, it is of great importance that credit unions are not tarnished and blighted by new measures being introduced to address failures experienced by the nations financial institutions.   
 
 

 

 

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