Presbyterian Church Expresses Deep Concern Over Mutual Society Shareholders

The Presbyterian Church has expressed its 'deep concern' and the need to offer 'pastoral care' to shareholders following the issue of a statement today from the Presbyterian Mutual Society that 'because of the current exceptional financial circumstances it is unable to meet demand from its shareholders for withdrawal of funds.' (see full statement here)

"Today's statement from the Mutual Society has naturally caused deep concern for many of our members and in offering pastoral care as we must do, it is important that we are aware of the facts," said Clerk of the General Assembly Rev Dr Donald Watts.

"It is easy to point out that the Mutual Society is a separate legal entity which is quite separate from the Church. It is also clear that the Church cannot in any way underwrite the commitments of the Society. However, the reality is that many Presbyterians who have invested in the society are now understandably worried and we have a responsibility to care pastorally for them.

"The situation which has arisen is part of the wider 'credit crunch' which seems to have taken everyone by surprise. The Mutual Society found in recent weeks that the requests to withdraw money have far exceeded the liquid cash funds which are available. Of course in the longer term the assets of the Society are in loans and property which are secure and can be realised, although this is not the best time to sell property. The Directors are rightly asking for time to handle the situation in the best way for everyone, but of course that may not be how this develops.

"While, as ministers, we cannot give financial advice I hope we will be able to show that we care and point people towards those who can help. The Church is also being supportive of approaches made by the Directors of the Society to Government. The Moderator has written a letter to the Prime Minister encouraging a positive response to the request that the guarantee offered to savers be extended to apply in these circumstances. The Directors of the Society have also had discussions with Executive Ministers. We will continue to be supportively in touch with those who have the decisions to make."

Issued by Stephen Lynas, Presbyterian Information Services. Info@PresbyterianIreland.org