Rescue Package For PMS Imminent

An agreed rescue package for the Presbyterian Mutual Society (PMS) is to be implemented within weeks.

As both local council and Stormont elections loom, NI First Minister Peter Robinson said the implementation of the £225m package would soon be with the Administrator and 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.

Party colleague and fellow Executive Minister, Arlene Foster said that under the new scheme, currently being finalised by the Administrator, all members with shareholdings of less than £20,000 should be able to receive all of their money and noted that if the Executive did not provide this rescue package, they would have undoubtedly lost all their savings.

Economic Development Minister Foster added: "Although the larger savers will not receive all of their money immediately, there is a good possibility they will be able to recoup the remaining money through an orderly wind down of the Society by the Administrator. This however will depend on what happens within the property market over the next 10 years."

DUP Finance Minister Sammy Wilson commented: "Despite some suggestions that it could be Autumn before payments are made, this scheme, if approved, should allow payments to be made before the end of June.

"I trust this will bring some reassurance for the hundreds of families who have been affected by the PMS collapse.

"Having met many savers I am very much aware of the heartache this matter has caused all across Northern Ireland," he said.

Last December, the DUP Finance Minister made a budget commitment to the savers whose cash has been frozen after the organisation went into liquidation.

Speaking at Stormont he said: "I am pleased to announce that this draft Budget contains provision for an assistance package for the PMS savers.

"This is financed by an additional £175m of borrowing under the Reinvestment and Reform Initiative in 2011-12 and a contribution from the Treasury of £25m which is matched by an equal contribution from this Executive.

"When the proposals are implemented this will put an end to the long nightmare faced by many PMS savers," he said, just over three months ago.

See: Presbyterian Savers 'Saved'

(JG/BMcC)