The Central Bank has paid out over €39m owed to the near 11,000 members of Charleville Credit Union under the deposit guarantee scheme.
The High Court in Dublin yesterday appointed liquidators to the Co Cork credit union following an application by the Central Bank.
Provisional Liquidators were appointed to the credit union last month.
The Central Bank had said that Charleville Credit Union was in breach of a number of regulatory directions and was in a distressed financial position.
It said that if it had not taken the action to appoint liquidators, it believed there could be a "disorderly failure" of Charleville Credit Union.
The winding up of the credit union was in the public interest, the Central Bank added.
Charleville Credit Union has been under close regulatory supervision for six years, but has been unable to raise and keep its cash reserves at the required level of 10% of assets, despite receiving a €7m bailout from the League of Credit Unions.
Attempts to merge with other credit unions also failed.
In a statement last night, the Central Bank said that since the appointment of the provisional liquidators, the Deposit Guarantee Scheme has issued compensation payments to approximately 10,900 members of Charleville.
The total amount of compensation paid to date amounts to €39.2m, representing over 99% of depositors covered by the Scheme, which covers savings up to €100,000.
Members of the Co Cork credit union started receiving their payments last month.
In the statement, the Central Bank said it remains fully supportive of the credit union sector in Ireland.
It added that it is committed to the continued development of a strong and sustainable sector that meets members' changing needs and protects their savings.
