Brussels, 17/12/2015 (Agence Europe) - On Thursday 17 December, the European Commission approved the extension, until 30 June 2016, of the Irish credit union resolution scheme.
The objective of the Irish scheme is to safeguard financial stability and to reduce the financial losses as much as possible when a credit union becomes unable to meet the regulatory requirements. It allows for the orderly winding-up of the failing credit union through the transfer, within the framework of a competitive process, of its assets and liabilities to a purchaser. It allows Ireland to provide public financial aid in the framework of this transfer.
The scheme also ensures an adequate contribution of the failing credit union towards the liquidation costs, as all of its assets and liabilities are transferred to the purchaser. Lastly, the competitive procedure prevents the purchaser from being able to derive an undue advantage by acquiring assets which are sold at under-valued prices. This keeps the competition distortions which may result from state aid to a minimum, the Commission finds. (Original version in French by Elodie Lamer)