Credit unions offer €5 billion housing fund to State

No response as yet from the Government...

Credit unions offer €5 billion housing fund to State

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The Irish League of Credit Unions is willing to put up €5 billion to help the housing crisis.

The fund could be kept off official borrowing figures and would build thousands of houses over the next six years, the Irish Times reports.

Writing to the Department of Finance, the league stressed that it is anxious to employ its resources for "community-enhancing investments".

No official response has been forthcoming thus far.

The league represents 437 credit unions nationwide and has savings in excess of €11 billion. It has made it clear to the Government that it currently has a surplus of €8 billion that could be used for funding.

League President Brian McCrory told the Irish Times that the offer would have the "double benefit" of securing the future of the credit union movement.

The credit union regulator has expressed concerns that credit unions would become overstretched.

Dan O'Brien, Chief Economist at the Institute of International and European Affairs, said that credit unions should lend to small developers and bypass the Government completely: