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The Board of Directors and management of Fermoy Credit Union Limited moved to reassure members of the financial stability of the credit union.

In response to concerns raised as a result of the transfer of the assets of Newbridge Credit Union to Permanent TSB this week, the Board of Directors and management of Fermoy Credit Union Limited moved to reassure members of the financial stability of the credit union. 

"Members should take comfort from the fact that the credit union has good reserves," CEO Martina Cotter explained, saying it had a statutory reserve at 12.3% of total assets as at September 30th 2013 which is in excess of the 10% requirement set out by the Central Bank. Their Bad and Doubtful Debt reserve is €5,771,679 or 33% of total loans. 

Media attention has been given too this week to the value and duration of loans issued by credit unions. Fermoy Credit Union says the average loan with them is €8,000 with average loan duration of 2.7 years.

"As our members are already aware, Fermoy Credit Union is operating under restriction from the Central Bank. We are glad to say that some relaxation of these restrictions has occurred in 2013 and we are currently preparing submissions to the Central Bank with regard to a further relaxation," the CEO said, adding: "The Board and management have embraced the enhanced governance requirements under the 2012 Credit Union Act and have developed a comprehensive Corporate Governance Framework for all officers."

It was stressed that members savings are secure and continue to be protected by the Government Deposit Guarantee Scheme up to €100,000. Fermoy Credit Union is also affiliated to the Irish League of Credit Unions and contributes to the ILCU Savings Protection Scheme which offers additional protection with regard to member savings.

Earlier this year members were advised by Fermoy Credit Union that they held a deposit with IBRC (formerly Anglo Irish Bank) and had unfortunately suffered an investment loss of €1.58M following its sudden liquidation. They say they are continuing to pursue the repayment of that amount in full.  

"Fermoy Credit Union has weathered many storms in recent years and we thank our members for their continued support," Martina Cotter went on, revealing that a dividend to members will be impacted by the loss of the IBRC deposit.  "Without this writedown the credit union would be reporting a surplus in excess of €1.5 million.  Our draft financial accounts have been submitted to the Central Bank for review and approval.  Once this approval is received, we plan to hold our annual general meeting in December."

"Fermoy Credit Union Limited remains a strong, secure financial co-operative which continues to offer members a full range of financial services including loans," the CEO concluded.

When contacted, the chairman of the board of Mitchelstown Credit Union, Maurice Madden said he wanted to assure members that in the light of events at Newbridge, 'all investments and deposits are 100% safe'.

"Our liquidity and reserves are very healthy, so members can be assured that all deposits and investments are 100% secure. To further assure members, we point out again that we are affiliated to the Irish League of Credit Unions. We also contribute to the ILCU Savings Protection Scheme which offers additional protection to members' savings.

"Further good news for members is that the Death Benefit Insurance (DBI) is available to all our members, and in light of the recent budget, we encourage new members to join up and automatically avail of this valuable facility.

"We continue to serve our very loyal members with a number of new and exciting services which will be available in the near future," the chairman concluded.

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