Credit union reassures 10,000 members after securing funds

An estimated 10,000 members of a credit union in Kerry have been assured “it’s business as usual” after receiving supplementary funding from the Irish League of Credit Unions.

Killorglin Credit Union has not held an AGM in two years but the ILCU has moved to advise members the local credit union will continue to provide them with essential services.

Experiencing a shortfall in reserves due to the recession, Killorglin recently received approval from the registrar of credit unions to obtain supplementary funding from the ILCU.

Some members are now asking when an AGM will be held and a spokesman said it was hoped to hold AGMs for 2010 and 2011 very soon.

An ILCU spokesperson said the credit union will continue to work with the registrar and the ILCU regarding AGMs and members will receive the normal notice period in advance of the meetings.

The Central Bank, which regulates the credit union sector, decides whether a credit union can hold its AGM.

Under rule 129 of the credit union movement, a credit union should hold its AGM in October, November, December, or January following the end of the financial year.

The registrar can also direct a credit union to postpone the holding of such a meeting for a period not exceeding nine months.

The Killorglin Credit Union spokesman said it hoped to get approval from the registrar to shortly hold AGMs for 2010 and 2011.

He declined to disclose how much funding Killorglin needed from the ILCU, stating it would be wrong to give such data to the media before informing members.

The members would be told of the amount when they received letters of notices for the AGMs, he added.

The spokesman also reassured members their money was safe and that the credit union was trading and lending as usual.

Last July, its assets stood at just under €37m, including fixed assets of €3.8m.

The AGM will decide whether a dividend for 2010 will be paid to members.

In 2010, the ILCU carried out a review of the credit union’s finances, including its loan book, and recommendations from this review have been implemented. Four new members have been appointed to the board as well as a new chief executive and treasurer.

Members’ savings remain protected under the Government’s deposit guarantee scheme of up to €100,000 per member.

The ILCU pointed out many new procedures were in place for credit unions, with new regulatory and economic considerations, which have caused some AGMs for credit unions to be delayed.