Connect with us

EU

#StateAid: Commission approves seventh prolongation of #IrishCreditUnion restructuring scheme

SHARE:

Published

8 years ago

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

The European Commission has found the prolongation until 31 October 2018 of an Irish scheme aimed at restructuring credit unions, to be in line with EU State aid rules, and in particular the 2013 Banking Communication.

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

Stabilization involves assisting fundamentally viable credit unions that have temporarily slipped below the regulatory reserve requirements. The Commission found that the measure ensures that the beneficiaries become viable in the long-term through restructuring or merging with sound credit unions, and that they contribute to the cost of restructuring.

Moreover, the impact on competition is limited because credit unions are small and do business only with members. The Commission initially authorized the scheme in October 2014. It was subsequently prolonged six times, the last time in October 2017. Until now, the Irish authorities have managed to restructure credit unions without granting any aid under this scheme.

More information will be available on the Commission's competition website, in the public case register under the reference SA.50692.

Share this article:

Share this:
Related Topics:
EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter. Please see EU Reporter’s full Terms and Conditions of publication for more information EU Reporter embraces artificial intelligence as a tool to enhance journalistic quality, efficiency, and accessibility, while maintaining strict human editorial oversight, ethical standards, and transparency in all AI-assisted content. Please see EU Reporter’s full A.I. Policy for more information.
Advertisement

Trending