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Credit Union treasurer hits out
28.01.10
by Caoimhinn Barr, Inishowen Independent
THE treasurer of Foyle Credit Union in Moville has
hit out at the Financial Regulator asking: ‘Who
really runs our credit union?’
Speaking at the AGM on Monday night, Brian Barr,
said the board were forced to accept new directives
from the Regulator, resulting in only a modest
dividend for members. This was despite the fact that
the credit union continued to grow its business.
Shares in the Inishowen institution increased from
€7.9 million in 2008 to €8.4 million last year.
Loans have also shown a slight increase, rising from
€4.3 million to €4.4 million in the same period.
In previous years the credit union could include
investment gains when calculating members' dividends
but this year the Financial Regulator has decided
that only money received – realised gains – may be
counted. |
“Protracted
negotiations have been taking place between the
Financial Regulator and the board of directors for
several weeks delaying the holding of this AGM,” Mr
Barr said.
“The board were recommending a 2% dividend and 10%
interest rebate but we have been ordered by the
Financial Regulator to pay much less than that.
“This is despite the fact that we have over €2
million in liquid assets in an investment and cash
in the bank.”
“The board of directors has no other option, given
the timeframe involved in any legal appeal, but to
accept this directive for the year ended. |
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I can assure members
that the board will be in a much stronger position
by September 2010 to revert to a more positive
dividend,” he added.
Mr Barr urged local residents to continue to support
Foyle Credit Union.
“We remain the best option for savings and loans.
For example you can get your car changed at the
special 6.5% rate of interest. You should think
about taking a loan instead of withdrawing your
shares, as loan interest is our only real source of
income,” he said.
He also praised the staff at the credit union who he
said were "friendly, professional and dedicated to
providing an efficient service for members in the
year ahead". |
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