Credit unions risk €200m bond loss

IRISH credit unions could face a combined loss of over €200 million on subordinated bonds held with Irish banks.

The claim was made yesterday by Seamus Coffey, an economics lecturer in UCC.

He told RTÉ’s This Week that individual credit unions holding up to €300m in subordinated bonds could face losses of at least €200m, if Finance Minister Michael Noonan imposes a 75% penalty or “haircut” on their bonds.