NCUA to repay U.S. Treasury balance due by Oct. 31
By Oct. 31, the National Credit Union Administration plans to fully repay 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 fully repaid. NCUA’s $6 billion borrowing line with the Treasury remains available for future agency contingent funding needs, including obligations of the NCUA Guaranteed Notes Program.
While Treasury borrowings will be repaid, 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.