Paschal Donohoe, the finance minister, today announced the government’s intention to “pause the collection of levies in relation to the resolution and stabilisation funds for the credit union sector for the foreseeable future”.

A total of €5.3 million was collected from the credit union sector in 2023 and paid into the credit institutions resolution fund and the credit union stabilisation fund.

The levy rate will be reduced to zero per cent from 2026, subject to the completion of statutory consultation and certain conditions prevailing.

Mr Donohoe said: “This decision was taken against the backdrop of the current assets of the funds being sufficient for now, the current reserve strength of the sector, and is subject to certain conditions being met.

“Providing the credit union sector with some certainty in relation to the collection of these levies allows the sector to better plan their strategies and manage their finances for the years ahead.

“I would like to thank all those who responded to the public consultation and who engaged with my Department during the course of this review.”

Robert Troy, minister of state for credit unions, added: “The announcement of today’s proposal to pause the collection of levies will assist in reducing costs for credit unions and will provide additional capacity for the sector to invest in and provide vital services to the communities that they serve.

“Since taking on my role as minister with responsibility for credit unions, I have seen first-hand the work that credit unions undertake to support their communities.

“I am committed to working with the sector to fully realise the potential of the sector as a community-centric financial institution, enhance the ability of the sector to better serve its members, and ensure that the sector leverages any opportunities presented to it in line with the commitments in the programme for government.

“The proposal to pause the collection of levies reflects the increased resilience and the evolution of the credit union sector since the crisis-era when the safety nets of the resolution fund and stabilisation fund were initially put in place.

“I look forward to working with the sector to improve competitiveness, sustainably expand the sector, and continue to meet their members’ and communities’ needs now and into the future.”