The Central Bank said that most members of Charleville Credit Union have been sent cheques to cover their deposits under the deposit guarantee scheme.
In a statement, the bank said that payments by cheque have been issued to about 10,900 members of Charleville Credit Union.
This follows the appointment of provisional liquidators earlier this month to the Co Cork credit union after a request from the Central Bank.
The Central Bank made the move after it said that Charleville Credit Union was in breach of a number of regulatory directions and was in a distressed financial position.
In a statement this morning, the Central Bank said the compensation paid amounted to about €39.2m, and represented over 98% of eligible deposits covered by the deposit guarantee scheme.
The scheme protects deposits up to €100,000.
The Central Bank said that in certain instances, it may need some additional information before payments are made, for example in the case of a deceased member's estate.