Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

First, the Deputy may be interested in the type of investment product into which they had put their money. It was called the Anglo Irish Bank Credit Union Bond 2005 and my understanding of this bond is that it was an equity-linked bond, marketed exclusively to credit unions by Anglo Irish Bank private bankers in 2005. This bond was never covered by the eligible liabilities guarantee. It was linked to the performance of the Euro Stoxx 50 index and as outlined in the prospectus, in the event of Anglo defaulting, the investors' capital will not be guaranteed. The bond offered annual liquidity, that is, it could be cashed in once a year over its eight-year term. I do not understand, when the State moved out virtually all deposits, the reason credit unions stayed in, when the prospectus has stated that in the event of Anglo defaulting, the investors' capital would not be guaranteed, when they were not locked in and when they had the option of getting out each year on an annual basis.

That said, to answer the Deputy's questions, in the first instance, €100,000 is safe. Second, they will join their place in the queue with other creditors to share any residue. In addition, however, if the hit on an individual credit union is such that it comes below the required reserves, it should take up the matter with the Credit Union Restructuring Board, ReBo, because the credit union movement has its own internal fund and the State also has provided €500 million in a fund to help the capital requirements of impaired credit unions.

That is the series of issues.

See this speech in context