Executive Agrees PMS Savers Fund

The Northern Ireland Executive has agreed in principle to provide a loan of £50million to create a hardship fund which will provide financial relief to Presbyterian Mutual Society (PMS) savers facing financial difficulties.

The fund, which will be targeted mainly at small savers, is part of a series of proposals that will facilitate the orderly run down of the PMS. It is anticipated that the fund would be administered by a Panel who will consider applications from PMS members and award payments based on individual circumstances.

The proposals will also include the provision of a loan on commercial terms of £175million to the PMS Administrator.

Operating under the auspices of the Courts, the Administrator would discharge the liabilities of the PMS creditors, effectively replacing their liabilities with the liability of the loan.

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 loan facility would be financed by the Executive drawing down the additional £175million through a one-off increase in the Reinvestment and Reform Initiative (RRI) borrowing facility.

The proposals are contingent on due diligence, Treasury approval to extend the RRI borrowing facility and on resolution of any potential state aid issues. The Executive will continue its discussion with the Treasury to resolve these matters

(NS/GK)