Fianna Fail spokesperson on finance Michael McGrath, has called on the Minister for Finance to clarify the impact of the liquidation of IBRC on Credit Unions who hold a certain investment product with the former State-owned bank.

Deputy McGrath said he has been contacted by a number of Credit Unions who hold a certain tracker-type investment product with IBRC and who now fear the value of the investment will be lost as part of the liquidation of the bank.

“It would appear that the investment product is not covered by the Eligible Liabilities Guarantee Scheme and will therefore join the queue for payment with the other unsecured creditors at the bank. This could be very serious indeed for the Credit Unions concerned.

“I would ask the Minister for Finance to clarify the number of the Credit Unions who invested in this product and the possible total exposure of the Credit Union sector to losses arising from the IBRC liquidation.

“It will be a very difficult pill indeed for Credit Unions to swallow if they are forced to take losses on these investments while all senior bondholders in IBRC are repaid in full. I am calling on the Minister to immediately clarify the impact of IBRC’s liquidation on the affected Credit Unions.”

Deputy McGrath pointed out that each member’s savings of up to €100,000 in Credit Unions are fully protected under the Deposit Guarantee Scheme.