To ask the Minister for the Economy (i) for an update on his Department’s efforts to help Presbyterian Mutual Society savers; (ii) what conversations he has had with the Westminster government regarding this; and (iii) when this issue will be resolved.

This question has been transferred to my Department who are in the lead with regards to Presbyterian Mutual Society. In response to the questions put to Mr Murphy

(i) A £225m loan was provided by the Executive to the Society in 2011. As a result of this savers who invested less than £20,000 in total received a payment of 100% of their shares and/ or 85% of their loans. Savers who invested more than £20,000 in total received a payment between 77% and 85% of the value of their holdings before deducting an individually agreed voluntary deferral. Payments were made in August 2011. There was no guarantee beyond this of any further recovery to Members and Shareholders made in the Scheme of Arrangement which was approved by the Society Members and Shareholders in July 2011.

(ii) The Presbyterian Mutual Society is managed under a Court Approved Scheme of Arrangement. Following the collapse of the Presbyterian Mutual Society and subsequent review by a Ministerial working group established by HM Treasury to bring forward options to resolve the crisis, DETI (now DfE) was designated on 24 March 2011 to be the relevant department to take the solution forward. No further conversations have been required with Westminster.

(iii) The Department’s loan facility was due to cease in November 2020, however the effect of the UK lockdowns have impacted the ability of the Joint Supervisors to complete their work by that date. To facilitate a more managed divestiture of the remaining assets, the Finance Minister and I have approved a two year extension to the loan facility until November 2022 if required. The Scheme of Arrangement, per the legal agreements, however ceases where “there are no further Assets of the Society which can be cost-effectively collected and be distributed in accordance with the provisions of the Scheme.” Presently the current forecasts indicate an expected £18.5m shortfall on the Department’s loan, which is ranked first in the order of payment. The Joint Supervisors have written to Members to state that given the current projected shortfall, and as the Department has first priority over all realisations, there will be no further repayment to any other class of creditor or member.