Naas CU wanted €69m to merge with Newbridge

Naas Credit Union sought a high price for any merger with the debt-laden Newbridge CU.

Naas Credit Union sought a high price for any merger with the debt-laden Newbridge CU.

It has emerged that Naas Credit Union was seeking tens of million of euro in advance of a merger between the two entities.

Naas Credit Union (NCU) sought a financial incentive amounting to €48m in cash up front which would cover a shortfall in the Newbridge CU balance sheet.

Additionally, Naas also looked for a loan guarantee amounting to €21.5m.

The figures were released by the Central Bank.

Naas CU was always in a reasonably strong bargaining position. It has up to €30m. available to lend and members have been encouraged to make loan applications at Naas CU annual meetings. It also has assets worth €78m.

However Naas CU’s interest came to an end on November 1 when board chairman Peter Fullam and general manager Sean Murray told the Central Bank it had decided to “withdraw from the process” as it was “not in the best interests of their members”.

This followed an examination of Newbridge CU’s accounts and Naas CU decided the proposal was “above their risk appetite.”

In a statement issued to the Leinster Leader, Naas CU management reaffirmed that a merger would not be in the interests of the members.

- Paul O’Meara.