Credit unions warned of loan risk

RESCHEDULING of loans without the creation of appropriate provisions can pose a potentially serious and hidden danger to the financial stability of credit unions.

This is according to the Financial Regulator’s Registrar of Credit Unions Brendan Logue, who said the issue of rescheduling of loans has come to the forefront in the economic crisis.

“Clearly, credit unions must deal with their members who are in arrears in a reasonable and supportive way,” he said.