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High Court approves €53 million Newbridge Credit Union bailout

It was business as usual this morning at Newbridge Credit Union following yesterdays High Court decision to transfer all loans and savings of the credit union over to Permanent TSB. The troubled credit union risked going into liquidation if the change over had not been approved by the Central Bank. The decision to bail out the credit union has cost the taxpayer around €53 million.

Permanent TSB has released a statement in which it has assured the members of Newbridge Credit Union that their deposits held in the credit union would still be honoured. They have encouraged members to continue to make deposits and have said that loan applications will still be accepted as normal.

In the statement released this morning, Permanent TSB chief executive Jeremy Masding explained that the take over by the bank would provide stability and that the credit union will continue to function as normal. Mr. Masding said “We are bringing stability and management expertise to the significant financial challenges facing Newbridge Credit Union. We believe that the terms of the transfer will protect Permanent TSB bank from any financial risk in the transaction and this will enable us to focus our resources entirely on managing the credit union’s deposits and loan book.”

It was the opinion of the Central Bank that the transfer of ownership to Permanent TSB was the “only viable solution” to the huge financial difficulties that have been facing Newbridge Credit Union since as far back as 2008. The move has not gone down well with the activist group Newbridge Credit Union Action who strongly oppose the decision. The group are expected to make an appeal to the High Court.


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