Joan Burton (Dublin West, Labour)
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Question 191: To ask the Minister for Finance the safeguards in place to ensure that the Government can obtain sufficient sterling to meet its liabilities to British customers of Irish banks should one or more of the banks covered by the guarantee scheme fail; and if he will make a statement on the matter. [38853/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Credit Institutions (Financial Support) Scheme provides a guarantee for covered institutions until 29 September 2010. Among the key objectives of the Guarantee Scheme is to provide financial support to covered financial institutions with a view to protecting the public interest in maintaining the stability of the financial system in the State. The Guarantee Scheme contains various provisions which reduce the risk of a failure of a covered financial institution. In return for the guarantee a covered institution pays a charge which is credited to a designated account maintained at the Central Bank and acts as a reserve for any payment to be made under the scheme.

In relation to the specific issue raised by the Deputy, I am advised that there are no limitations on obtaining sterling using a foreign exchange contract for any payment that may arise under the scheme.