THE DEPOSIT GUARANTEE Scheme (DGS) has issued cheques to more than 3,100 depositors at Berehaven Credit Union in Castletownbere, Co Cork, which was liquidated on 23 July.
The compensation payments, which amount to €10 million so far, were issued overnight, and cover 85% of the 3,500 Berehaven depositors.
Although a Central Bank spokesperson could not confirm when the remainder of the payments would be sent, legislation requires the process to be completed within 20 days of liquidation.
Berehaven Credit Union members do not need to apply for the DGS compensation, as the cheques are processed and posted to their address automatically.
The payments are being drawn from the Deposit Protection Account (DPA), which is operated by the Central Bank and funded by institutions covered by the Deposit Guarantee Scheme.
On 23 July, the High Court approved the Central Bank’s application to liquidate Berehaven Credit Union, after Dame Street denounced “poor governance and lending practices” there.
“Berehaven Credit Union was no longer viable as a stand-alone credit union,” the Central Bank said in a statement at the time.
“Alternative options to resolve the serious financial difficulties at the credit union were examined but were found not to be feasible,” it added.
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