Michael McGrath (Cork South Central, Fianna Fail)
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Question 57: To ask the Minister for Finance the number and extent of recapitalisations of credit unions from resources within the sector itself that have taken place to date; and if he will make a statement on the matter. [30048/12]

Michael Noonan (Limerick City, Fine Gael)
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The Report of the Commission on Credit Unions identified 51 credit unions at 31 December 2011 with total realised reserves below 10%, of which 25 credit unions were seriously undercapitalised with reserves below 7.5%. The Report noted that, since December 2011, some credit unions have been assisted by private funds to address this position.

The Irish League of Credit Unions (ILCU) has since 1989, operated on an all-island basis a savings protection scheme (SPS) for credit unions. The SPS operates by providing financial support to credit unions that get into difficulty. As this is a privately owned and managed fund it is not possible to provide the Deputy with the information requested. The Commission on Credit Unions recommended the establishment of a statutory stabilisation mechanism whereby financial assistance could be given to credit unions on an individual basis, in certain circumstances, with certain conditions attached to the provision of such assistance. This would be facilitated by the establishment of a stabilisation fund to be managed by the Central Bank. Work on the heads of Bill to provide the statutory basis for this recommendation is currently ongoing.