NAFCU President Fred Becker today encouraged NCUA to borrow as much as it is allowed to so credit unions can spread out their repayment to the NCUSIF over seven or eight years to pay for the agency's rescue plan for corporate credit unions.
Becker wrote NCUA Chairman Michael E. Fryzel and the other two board members that the agency should borrow the $6 billion that Congress recently authorized. These funds would be used to restore the $1 billion of capital to the NCUSIF that was recently injected into U.S. Central, the $0.9 billion loss reserve and $4 billion for the credit loss on the investments of the corporate credit union investments.
Becker also urged the agency to review the program periodically, including the length of time allotted to recapitalize the NCUSIF.
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