Cope seeks a deferral of changes to credit union lending abilities

Pat the Cope Gallagher MEP spoke with the Minister for Finance Brian Lenihan TD last week to request that he consider deferring the introduction of proposed changes to the lending abilities of Credit Unions.

The proposed changes are being considered by the Government in the context of Central Bank Reform Bill.

“I spoke with the Minister for Finance Brian Lenihan TD last week and I expressed my concerns to him about some of the changes to credit union lending that are proposed in the Central Bank Reform Bill.

“It is being proposed to restrict credit union’s lending further in the interest of regulation of the industry.

“However, the reality is that many credit unions have reached their limit as laid out under the current limits so they are finding that they are not in a position to lend further to their customers.

“In many instances, they are not able to facilitate customers who are having difficulty making repayments because this would mean lengthening their loan period, and because of the lending restrictions, many credit unions cannot be flexible in that way.

“The Irish League of Credit Unions wants measures that will allow them to help members who have been affected by the downturn.

“It claims that the changes as proposed will have a severe financial impact on many credit unions and could ultimately undermine the confidence in the movement.

“I have asked Minister Lenihan to consider the points being made by the ILCU and to consider deferring the introduction of section 35 of the Central Bank Reform Bill. The Minster advised me that he will be meeting with the ILCU again before the proposed legislation is discussed at Committee stage in the Oireachtas,” concluded Pat the Cope Gallagher MEP.

ENDS