Executive pledges £50m for PMS savers

Published Thursday, 15 April 2010

The Stormont Executive has agreed in principle a £50m hardship fund to assist savers in the Presbyterian Mutual Society.

The bail-out loan is aimed mainly at small savers and follows lengthy discussions with church figures and the Treasury.

It is understood that the fund will be administered by a Panel who will consider applications from PMS members and award payments based on individual circumstances.

The proposals will also include a loan of £175m plus interest from the Treasury to the PMS administrator. The administrator will then pay creditors, who are mainly larger investors.

A spokesman for the Executive said: "Repayment of the loan would be effected through the rental revenues received from PMS properties, other incomes, and the sale of property owned by the PMS as the market improves."

The proposals depend on Treasury approval to extend the borrowing and on resolution of any potential state aid issues.

The Presbyterian Church has agreed to contribute £1m to the hardship fund established by the Government as part of the rescue plan for savers.

The church's general assembly met this week to discuss its part in the bail-out of the Presbyterian Mutual Society.

The High Court originally ruled that shareholders with less than £20,000 in the society cannot receive interim payments from the £20m pot of money that the administrator has received from rental and mortgage income.

Mr Justice Donal Deeny's decision in February was taken on the basis that they cannot be classed as creditors.

Nearly 10,000 Presbyterians lost access to their savings in 2008 when the society went into administration following a run on its funds.

Comments

5 Comments

joe murray in Belfast wrote (768 days ago):

I bet you if this was a Catholic organisation thye wouldn't be getting a penny - and rightly so. Why should these people with money to save be given my hard-earned tax money? I can't afford to save, and certainly wouldn't expect anyone to bail me out if I did a stupid deal with my bank!

Norman in Lisburn wrote (768 days ago):

I trust that the Audit Office will ensure that our £175 million loan is repaid to us. As for the"Hardship" Fund, although it has not been made clear, one hopes that this is also a loan fund, repayable by the PMS. The PMS Investors, after the PMS is finally wound up, will presumably still face lossse on their capital. This is as it should be. It is for the rest of us

Brian in United Kingdom wrote (769 days ago):

Why, oh why are taxpayers bailing out what is effectively a "sectarian" banking organisation i.e only presbyterians are eligible to invest/save in it. These people put their money into the PMS to make money, and the PMS failed. It happens, live with it! As a taxpayer who is not a presbyterian I couldn't have invested in the PMS so why should I be expected to bail them out?

David in USA wrote (769 days ago):

Theyd be better putting 50million punds into our hospitals and stop the long waiting times to be seen by a doctor and provide machines when people needs them.A great government pact to help the presbyterian savers..laughable....Do you think the DUP is going to help Sinn Fein put millions into helping catholic communities which are run down and where crime is high?...Not a chance..Money....absolutely sickening...Who are we going to vote for?...You may as well vote for yourself as you are the maker of your own future..not your government..whoever is in power is not going to make a difference to the daily lives of people at all...they will introduce more taxes...get ready...the horrible economy is not enough to make them make a difference...watch as they whine at your front door step to get your vote then throw your opinions in the gutter when they are elected.

Barry in lisburn wrote (769 days ago):

Another side deal of the hillsborough agreement announced. They don't deserve the money back , they weren't complaining when the money was rising. It was an investment that can go up and down, if the money was that important they should have kept it in their normal bank account.