Review of loans in Newbridge Credit Union cost €55,000

A fund set up to support financially unstable credit institutions incurred consultancy costs of €55,000 in relation to an independent review of the former Newbridge Credit Union (NCU) loan book.

Financial statements of the Credit Institutions Resolution Fund (CIRF) was published this month.

Newbridge Credit Union was formally wound up in December 2013 on the petition of the Central Bank.

Large loans given to developers were considered to be a major cause of problems while concern was also expressed about “persistent breaches of regulatory standards” at the Co Kildare credit union.

The credit union was taken over by Permanent TSB in a €53.9m deal after a proposed merger with Naas Credit Union did not go ahead.

In 2013, the Central Bank entered into a Financial Incentives Agreement with PTSB in relation to the Newbridge Credit Union loan book.

The latest financial statements for 2017 for the Credit Institutions Resolution Fund (CIRF) was laid before the Houses of the Oireachtas this month by the Comptroller and Auditor General.

The figures show PTSB paid €4.7m to the Fund on June 30.

A further amount of €244,000 was due to the Fund as of December 31, 2017.

The CIRF is funded by contributions from credit unions and funding from the Finance Minister.

The minister advanced €250m to the Fund in 2017, the Irish Examiner reports.