THE news that Mal­low Credit Union is to take over the Charleville Credit Union branch has been well re­ceived by peo­ple in the town.

The branch was put into pro­vi­sional liq­ui­da­tion last month and the 12,000 mem­bers habe been with­out a ser­vice since then.

In a state­ment this week, Mal­low Credit Union stated: ‘ The Board ex­pressed its sad­ness at the re­cent ap­point­ment of a pro­vi­sional liq­uida­tor to its neigh­bour­ing credit union in Charleville. Hav­ing con­sid­ered the mat­ter care­fully, the Board were of the opin­ion that it was in­cum­bent upon them to of­fer a full credit union fi­nan­cial ser­vice to the peo­ple who re­side or are em­ployed in that com­mon bond.

“Hav­ing had the suc­cess­ful ex­pe­ri­ence of merg­ing with three other like-minded credit unions in 2016, Mal­low now op­er­ates a seven branch net­work across our en­larged com­mu­nity, where in ex­cess of 30,000 ac­tive mem­bers avail of our ser­vices. By achiev­ing this, not only have we demon­strated our ca­pa­bil­i­ties to op­er­ate a multi-branch fi­nan­cial co-op­er­a­tive, but we have also been true to our ethos of pro­vid­ing fi­nan­cial ser­vices to all ar­eas and mem­bers of our com­mu­nity, which is par­tic­u­larly im­por­tant where no other fi­nan­cial in­sti­tu­tions op­er­ate.

“Mal­low had made a pre­lim­i­nary ap­pli­ca­tion to the Cen­tral Bank of Ire­land (CBOI) for per­mis­sion to ex­tend its com­mon bond to cover this area and this had been ap­proved.

“The next step in this process was to seek ap­proval from the mem­ber­ship at the an­nual gen­eral meet­ing. Af­ter a lengthy and en­gag­ing dis­cus­sion, the mo­tion to ex­tend the com­mon bond was ap­proved by an over­whelm­ing ma­jor­ity of mem­bers present.’

Mal­low Credit Union chair­man David Browne told mem­bers at a spe­cial meet­ing at Spring­fort Hall last Fri­day that as soon as for­mal Cen­tral Bank ap­proval of the com­mon bond ex­ten­sion is re­ceived, Mal­low will pro­ceed to open up its new­est branch in Charleville with­out de­lay. This could hap­pen as soon as next week.

Charleville Credit Union closed on Oc­to­ber 13 af­ter the Cen­tral Bank went to the High Court to seek the ap­point­ment of pro­vi­sional liq­uida­tors to Charleville Credit Union. Charleville Credit Union was not in­sol­vent, with sav­ings of €40 mil­lion, but prob­lems dat­ing back to 2009, when it gave out loans dur­ing the prop­erty bub­ble re­sult­ing in €15 mil­lion in toxic loans, meant its re­serves fell short of the level re­quired by the Cen­tral Bank.

Lo­cal Charleville busi­ness­man and Fianna Fáil Cllr Ian Doyle said news that Mal­low Credit Union mem­bers had voted to ex­tend their com­mon bond into Charleville was wel­come in the wake of the ap­point­ment of liq­uida­tors to Charleville Credit Union.

“We have been look­ing for a func­tion­ing credit union here in Charleville since the liq­uida­tor was ap­pointed,” said Cllr Doyle. “I would be hop­ing that Mal­low will be able to open here within a week or two and that they will be able to do some deal with the liq­uida­tor to take over the ex­ist­ing credit union build­ing.”

“The liq­uida­tor is pro­vi­sional un­til next Mon­day, Novem­ber 13 so from then on - pro­vided the Cen­tral Bank is okay with ev­ery­thing, I can’t see why Mal­low can’t be in there and up and run­ning from this day week,” he added.

The clo­sure of Charleville Credit Union left 12,000 mem­bers with­out ser­vices.

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