Cara Credit Union likely to reduce savings cap to €30,000

The largest credit union in Kerry will likely have to reduce the cap on savings from €50,000 to €30,000 in the coming weeks.

CEO of Cara Credit Union, Pa Laide says COVID-19 has resulted in low loan book activity and big increases in savings, which means the cost of reserves increases.

To address these issues they must reduce the savings cap and to grow the loan book.

Pa Laide says reducing the savings cap is a last resort for them; he is aware of fifty credit unions nationally implementing similar measures.

Mr Laide apologised to the 3% of Cara Credit Union members who will be impacted and assured they will all be contacted about the changes.

He says these changes will be in place until the end of the financial year in September: