Liquidation of credit union only option

I am writing to clarify some points made by Mr Martin Sisk, president of the ILCU, in your recent article (July 25). Mr Sisk states that the proposed voluntary transfer between Berehaven Credit Union and another credit union was ‘found not to be feasible by the Central Bank’. This is incorrect.

The Resolution Report, published on the Central Bank website, sets out (paragraphs 10 and 11) that from February 2011 to April 2014 the Central Bank engaged in discussions between the ILCU, a potential transferee credit union and Berehaven Credit Union in relation to a potential voluntary transfer of Berehaven Credit Unions’ engagements.

It was intended that this would have been supported by funding from the ILCU’s Savings Protection Scheme. The Central Bank agreed this transfer could progress on the understanding that the funding would be provided.

However, issues arose which required clarification before the transfer of engagements could be finalised which ultimately led to the transferee credit union withdrawing from the voluntary transfer in April.

On foot of this notification from April the Central Bank explored all

alternative options to resolve the difficulties in Berehaven Credit Union, including a directed transfer of the engagements of Berehaven Credit Union to another credit union.

However, after consideration of all available resolution options liquidation was the only option available.

Nicola Faulkner

Central Bank of Ireland

PO Box 559

Dame Street

Dublin 2