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06/05/2011
Presbyterian Mutual Savers 'May Get 100%'
It has emerged today that 'smaller savers' in the collapsed Presbyterian Mutual Society (PMS) are hoping to receive all of their money back - despite fears that very little - or even no cash would be forthcoming.
Those with less than £20,000 saved could now gain maximum benefit once the PMS members vote in favour of a long-awaited rescue package which includes £200m of Government loans to the society.
Today marks the last day of members' formal voting for the arrangement for the £300m mutual, which suffered a run in 2008 and went into administration.
The Treasury Select Committee later found its 9,500 members were 'innocent victims' of 'a fatal regulatory gap' with former Presbyterian Moderator Rev Stafford Carson commenting yesterday: "Overall there has been a very favourable response expressed to the scheme of arrangement and I would be hopeful it will receive a positive outcome."
He said larger savers might defer removing all their money, in order to give smaller savers a 100% return.
A package, revealed earlier this year by the outgoing Stormont First Minister, Peter Robinson, is made up of £200m loans from Government, a £25m contribution from the Treasury and £1m from the Presbyterian Church.
If approved this will return all members at least 77 per cent of their funds and smaller savers all their funds.
In March this year, Peter Robinson said the implementation of the £225m package would be available to draw down from the beginning of April as the new financial year begins.
Mr Robinson said the news would come as an enormous relief to members of the Society who have had no access to their money for over two years after the PMS collapsed in 2008.
Mr Robinson commented: "One of the last pieces of business carried out by the Executive before the Assembly dissolved was the signing of the regulations required for the rescue package. These regulations were made by DETI under the 2009 Financial Assistance Act. Given the nature of this package it required state-aid approval by the European Commission.
"After consideration, the Commission has given a positive response to the scheme. This means the way is now clear for the Administrator to finalise the proposals and allow a vote by PMS members on the adoption of the scheme," he said.
DUP Assembly election candidate and outgoing Minister for Enterprise, Trade and Investment, Arlene Foster, welcomed the long-awaited move last month.
"I welcome the Scheme of Arrangement," she said, noting that she originally used insolvency legislation to allow for the society to be placed in to administration rather than forced liquidation.
"This bought us the necessary time to put these arrangements in place.
"It has been a slow and at times difficult path since November 2008, but I am pleased that the administrator has confirmed that the first cheques should begin arriving in July."
Correctly predicting the outcome revealed this week, she also commented: "I am especially pleased that the scheme has been constructed in such a way as to guarantee that small savers (those with savings of less than £20,000) will receive as a minimum 97% of their money back.
"I believe that the small savers will receive all of their money during the initial payments. Had we proceeded to immediate liquidation, the figure would have been zero," she explained, noting that it has taken just over two years to sort this problem.
See: PMS Savers Get Summer Pay-out Offer
(BMcC/GK)
Those with less than £20,000 saved could now gain maximum benefit once the PMS members vote in favour of a long-awaited rescue package which includes £200m of Government loans to the society.
Today marks the last day of members' formal voting for the arrangement for the £300m mutual, which suffered a run in 2008 and went into administration.
The Treasury Select Committee later found its 9,500 members were 'innocent victims' of 'a fatal regulatory gap' with former Presbyterian Moderator Rev Stafford Carson commenting yesterday: "Overall there has been a very favourable response expressed to the scheme of arrangement and I would be hopeful it will receive a positive outcome."
He said larger savers might defer removing all their money, in order to give smaller savers a 100% return.
A package, revealed earlier this year by the outgoing Stormont First Minister, Peter Robinson, is made up of £200m loans from Government, a £25m contribution from the Treasury and £1m from the Presbyterian Church.
If approved this will return all members at least 77 per cent of their funds and smaller savers all their funds.
In March this year, Peter Robinson said the implementation of the £225m package would be available to draw down from the beginning of April as the new financial year begins.
Mr Robinson said the news would come as an enormous relief to members of the Society who have had no access to their money for over two years after the PMS collapsed in 2008.
Mr Robinson commented: "One of the last pieces of business carried out by the Executive before the Assembly dissolved was the signing of the regulations required for the rescue package. These regulations were made by DETI under the 2009 Financial Assistance Act. Given the nature of this package it required state-aid approval by the European Commission.
"After consideration, the Commission has given a positive response to the scheme. This means the way is now clear for the Administrator to finalise the proposals and allow a vote by PMS members on the adoption of the scheme," he said.
DUP Assembly election candidate and outgoing Minister for Enterprise, Trade and Investment, Arlene Foster, welcomed the long-awaited move last month.
"I welcome the Scheme of Arrangement," she said, noting that she originally used insolvency legislation to allow for the society to be placed in to administration rather than forced liquidation.
"This bought us the necessary time to put these arrangements in place.
"It has been a slow and at times difficult path since November 2008, but I am pleased that the administrator has confirmed that the first cheques should begin arriving in July."
Correctly predicting the outcome revealed this week, she also commented: "I am especially pleased that the scheme has been constructed in such a way as to guarantee that small savers (those with savings of less than £20,000) will receive as a minimum 97% of their money back.
"I believe that the small savers will receive all of their money during the initial payments. Had we proceeded to immediate liquidation, the figure would have been zero," she explained, noting that it has taken just over two years to sort this problem.
See: PMS Savers Get Summer Pay-out Offer
(BMcC/GK)
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