European Commission again authorises Government’s scheme for credit unions

Scheme’s purpose is to underpin the stability and long-term viability of credit unions and the sector in Ireland

The Government has so far managed to restructure credit unions without granting any aid under the EU approved scheme. Photograph: Colin Keegan, Collins Dublin.

The Government has so far managed to restructure credit unions without granting any aid under the EU approved scheme. Photograph: Colin Keegan, Collins Dublin.

 

The European Commission has again reauthorised until October the Government’s scheme for restructuring credit unions. For the seventh time the commission has found the scheme, created in 2014, to be compatible with EU State aid rules.

The scheme’s purpose is to underpin the stability and long-term viability of credit unions and the sector in Ireland. Restructuring involves merging weaker and stronger credit unions, and if necessary providing a capital injection to make up any shortfall in the capital reserve requirements of the merged credit union.

To date the Government has managed to restructure credit unions without granting any aid under this scheme.