Presbyterian Mutual Savers 'Saved'?

Cash from the NI Executive is to be used as part of a huge £225m rescue package for the collapsed Presbyterian Mutual Society.

A deal is thought to be in an advanced stage with the Presbyterian Church set to hold a meeting of its General Assembly to discuss the bailout of the Presbyterian Mutual Society (PMS).

Moderator Dr Stafford Carson has called the 1,200 strong body to a special meeting in Church House.

It will discuss a proposed church contribution of £1m to help people who have lost access to their money.

Part of the plan aims to advance a loan of £175m from the Northern Ireland Executive to the PMS administrator to enable him to make faster progress in getting larger savers their money while the money would be financed through Reinvestment and Reform Initiative (RRI) borrowing by the Executive, authorised by HM Treasury.

The second part of the plan, it is understood, aims to direct £50m from the Executive into a hardship fund for smaller savers, allowing applications for the ‘withdrawal’ of up to £20,000.

The Church is being asked to contribute £1m and it is reported that central Government has already given positive indications to the overall plan.

The overall plan is expected to go before the Northern Ireland Executive on Thursday for approval and is understood to already have the backing of the DUP and Sinn Fein.

The package aims to deliver £225m in total – £175m towards repaying savings over £20,000 and £50m for repaying savings under £20,000.

See: Special Meeting Called To Discuss PMS Proposals

See: Hard-up PMS Savers In Focus

(BMcC/GK)