Concerns for local retailers raised over liquidation of Charleville Credit Union
Cllr Ian Doyle says liquidation of community bank will cause local business and retail sector to "suffer hugely" but expresses optimism over interest shown by other credit unions
20 October 2017 | 0
Local business people have voiced concerns about the potential consequences of Charleville Credit Union in the north Co. Cork, entering into liquidation last week.
The Irish Times reports the Credit Union’s problems occurred during the Celtic Tiger years, when some €15 million of loans turned toxic. The result is that the town no longer has a functioning community bank.
Cllr Ian Doyle, the organiser of a public meeting which took place earlier this week said: “Charleville may have been fortunate in that we have retained both our AIB and Bank of Ireland branches but a lot of people dealing with the credit union would have no dealings with the pillar banks because they are too small and they are hugely dependent on the credit union.”
“I’m a businessman myself and I use the credit union and I’m effectively out of business at the moment because all the deposits have been frozen by the liquidators for three weeks and that’s going to have a huge impact on business in Charleville over the next month or so,” he said.
“From a trading point of view, what happened here last Friday is disastrous,” Cllr Doyle added. “The retail and business sector here in Charleville is going to suffer hugely when people, including many who were getting their wages paid into the credit union, won’t be able to access their money.”
The Irish Times reports that at the public meeting, Mallow Credit Union revealed an interest in opening a branch in Charleville to replace the local credit union. Since then both Mitchelstown and Kilmallock credit unions have also shown interest.
Cllr Doyle agreed Mallow Credit Union would be a “natural fit”.
“We might end up losing our autonomy, but it’s a good outcome from a disastrous situation,” he said.