Double standards? Hindu Credit Union asks again for help

The government intervention to help CL Financial has raised questions about why similar calls for help from the troubled Hindu Credit Union fell on deaf ears. The Credit Union Members Group (CRMG), launched another appeal Friday for assistance, making it clear that it has not asked for a bailout.

The CRMG was formed after the Credit Union was closed last year. tens of thousands of depositors and shareholders stand to lose millions of dollars. Many of them had their entire life savings invested in the Hindu Credit Union.

When the credit union was closed, CL Chairman Lawrence Duprey was one of the people who slammed the organization for the way it handled its affairs.

Read the story: HCU involved in risky business

"In light of the action by Government to assist a private financial company, Credit Union Members Group (CRMG) is again requesting the Government to demonstrate compassion and goodwill towards HCU members," the CRMG said in a news release.

Its previous pleas for urgent Government intervention to prevent "a tragedy of immense proportions, imminent financial catastrophe, and horrendous societal consequences for over 100,000 members and their families" were ignored.

It reiterated that its plan for the HCU is a viable one and again outlined its restructuring proposals with a new Board and Management, an initial loan of $100 million that will be repaid after assets are unwound and a loan of $200 million to be repaid over a 10-year period.

It said it has never and is not now asking for a financial bailout.

CRMG said it believes that with help from the Government, "with a renewed focus on the Core Credit Union business, and with an orderly unwinding of assets, the HCU will be in a position to return most, if not all, of members’ investments in three to five years."

It said Central Banks and governments throughout the world are recapitalizing banks and financial institutions with the objective of rescuing and protecting the funds of citizens and stabilizing the financial sector.

"CRMG urges the Government and people of Trinidad and Tobago to assist in the recovery of members’ investments rather than the winding up of the HCU that will lead to members losing over half a billion dollars," the release stated.

Read story with summary of proposal to help HCU