Compensation payments totalling €10 million have been paid to more than 3,100 depositors of Berehaven Credit Union, the Central Bank has said.

The credit union in Cork closed its doors last week and a liquidator was appointed following High Court orders issued on behalf of the Central Bank.

Cheques have now been posted to over 85 per cent of the credit union’s members.

The bank said remaining deposits are being progressed “as quickly as possible” and it is expected that further payments will be made shortly.

It is advising depositors that they do not need to make any application to the scheme for repayment as this will be processed automatically.

Last week, the bank secured orders winding up the credit union. Insolvency practitioners Jim Hamilton and David O'Connor of BDO Ireland were appointed as provisional liquidators of the credit union in Castletownbere.

The closure affects more than 50 per cent of the 6,000 strong population of the Beara Peninsula, 3,500 of whom were members of the credit union.