Review of loans at Newbridge Credit Union raked up consultancy costs of €55,000

Fund details revealed

Leinster Leader reporter


Leinster Leader reporter


Review of loans at Newbridge Credit Union raked up consultancy costs of €55,000

The former Newbridge Credit Union building

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, according to today's Irish Examiner

An article by Catherine Shanahan points out large loans given to developers were considered to be a major cause of problems at the Credit Union while concern was also expressed about “persistent breaches of regulatory standards”.

The branch was formally wound up in December 2013 at the request of the Central Bank and taken over by Permanent TSB in a €53.9m deal.

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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 CIRF, laid before the Houses of the Oireachtas this month by the Comptroller and Auditor General, 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," writes Ms Shanahan.

She reports the accounts also show the Fund incurred legal costs of €194,000 in 2016 in respect of the wind-up of Rush Credit Union and of €195,000 in 2014 in respect of the wind-up of Berehaven Credit Union.