NCUA to Fully Repay U.S. Treasury Borrowings by October 31

The National Credit Union Administration (NCUA) plans to fully repay by October 31 the $1 billion outstanding balance on the agency’s borrowing line with the U.S. Treasury.

When that payment is made, the Temporary Corporate Credit Union Stabilization Fund’s outstanding borrowings from the U.S. Treasury will be repaid in full.

However, the agency noted no funds will be available to provide federally insured credit unions with an immediate rebate of Stabilization Fund assessments. Additionally, no funds are available for any recoveries by investors with claims for depleted capital of the failed corporate credit unions. NCUA must first satisfy any outstanding senior obligations of the Stabilization Fund and corporate credit union asset management estates.

With the repayment of borrowings from the U.S. Treasury, credit unions could be eligible for a dividend payment from the National Credit Union Share Insurance Fund (NCUSIF), if the NCUSIF is above the normal operating level and the NCUA Board declares a dividend.

Read the press release.