THE PRESBYTERIAN Church has welcomed the issue of cheques which will return £232 million (€266 million) to thousands of former savers and creditors of the failed Presbyterian Mutual Society as an “answered prayer”.
The administrator of the society, which collapsed in November 2008 following a run on its funds, confirmed that cheques were posted to members and creditors on Monday.
The cheques conclude a campaign to resolve a crisis which plunged many of its former members into financial hardship.
In the end, the Northern Ireland Executive and the UK treasury agreed to fund a rescue package. They have backed a financial assistance scheme put together by the administrator of the society with £225 million.
The Presbyterian Church in Ireland has also contributed £1 million to the package. A further £6 million has been raised from accrued income from the society’s investment portfolio.
Small savers and investors who had invested less than £20,000 in the failed society will receive all of their money back. But under the terms of the rescue package, larger investors and creditors will get 100p in the pound less a compulsory deferral of 15p.
The minimum return that anyone will receive will be “77 per cent” of their total holding in the society, which once had assets valued at £300 million.
As part of the rescue scheme, its supervisors will trade out the society’s assets for a period of up to 10 years which will enable the UK government loan of £175 million to be repaid with interest.
The administrator has previously indicated there is no guarantee there will be enough money left to pay deferred amounts to creditors once the scheme is completed.
The Presbyterian Church has said the payments will come as a “great relief” to former members of the society. Church moderator Dr Ivan Patterson said particular thanks were owed to those “who had voluntarily deferred a return of some of their money so that others would benefit”.
