DUBLIN--The Irish credit resolution scheme, which provides for the orderly winding-up of troubled credit unions in this country, has been extended until June 30th 2015.
The scheme, which was originally introduced in December 2011, enables the Central Bank to proceed “with swift resolution action where such an intervention is required,” according to the Independent.
The European Commission approved extending the program, which has already been extended on several previous occasions. The objective of the scheme is to safeguard financial stability and protect the interests of depositors when a credit union is unable to meet regulatory requirements, according to regulators.
It includes a €250 million resolution fund, to date funds have been used to help just three CUs; Newbridge CU; Howth Sutton CU, and Berehaven CU.