Canadian Govt. Tries To Prop Up CU

NEW BRUNSWICK, CANADA - As much as (C) $60 million is being allocated here by the government of New Brunswick to help prop up the Caisses Populaire de Shippagan, a credit union that has suffered financial difficulties for the past three years.

Some taxpayer groups are objecting to the provincial government's plan.

The credit union's financial statements began to bleed in 2004 following a series of commercial loans that went sour.

At that time it was placed under the management of the Central Credit Union of New Brunswick's risk management board, and the current plan calls for returning the credit union to the Fédération des caisses populaires acadiennes, the French-speaking organization native two Quebec.

More than two decades ago Caisses Populaire de Shippagan separated from the Federation and joined the Central Credit Union of New Brunswick.

According to the government, the $60 million is the maximum amount that would be needed; it declined to say how much will actually be used.

It also declined to say if the funds would be a grant, a loan or a loan guarantee. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com