27 Sept 2022

Government should allow credit unions loan to housebuyers says TD

Government should allow Credit Unions participate in housing schemes

Government should allow Credit Unions participate in housing schemes

Credit unions in Laois, Offaly and other counties should be allowed to help people to buy a house, according to a local TD. 

Offaly TD and Fianna Fáil spokesperson on Public Expenditure and Reform, Barry Cowen,  called on the Government to seriously examine allowing credit unions to help buyers.

“Why are the Government not making use of the credit union network to provide home loan schemes? Under present legislation or Central Bank rules, credit unions do not have the capacity to participate in schemes such as the Government-backed mortgage scheme."

“They are more than willing to do so. Credit unions are only lending 20% of their capacity. They have €1 million coming in per week that they cannot use. They are only permitted to invest in the pillar banks, but the pillar banks are not giving them a return. Any return from a housing scheme would be far greater than the 0% they currently get," Dep Cowen added.

He claimed the Taoiseach Leo Varadkar confirmed that it was something he needed to study more closely.

To continue reading this article for FREE,
please kindly register and/or log in.

Registration is absolutely 100% FREE and will help us personalise your experience on our sites. You can also sign up to our carefully curated newsletter(s) to keep up to date with your latest local news!

Register / Login

Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.

Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.