Ruairi Quinn (Dublin South East, Labour)
Link to this: Individually | In context

Question 37: To ask the Minister for Finance if he will confirm the net Exchequer income expected to arise from the credit institutions financial support scheme for each of the years 2008, 2009 and 2010; if he will confirm that this money will be available for use during the year in which it is received; if he will use this income to establish a contingency fund or to ringfence the funds in some other fashion; and if he will make a statement on the matter. [38824/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Credit Institutions (Financial Support) Scheme provides a guarantee for covered institutions until 29 September 2010.

The scheme provides that the income accruing from the charge will be credited to a designated account to be maintained at the Central Bank. This account will act as a reserve for any payment that may be made under the scheme. The scheme further provides that any amount standing to the credit of such an account at the expiration of the scheme will be paid to the Exchequer.

The current estimate of the income from the scheme over the two years is €1 billion. However, the level of income that will actually arise will depend on factors such as the institutions covered by the scheme, the level of covered liabilities and the charge applied to individual institutions. The scheme provides for the payment of the charge on a quarterly basis by each covered institution.

Liz McManus (Wicklow, Labour)
Link to this: Individually | In context

Question 39: To ask the Minister for Finance the amount of liquidity that flowed into the banking system here in the days after the granting of the guarantee to credit institutions; if this level of liquidity has been maintained in the intervening weeks; the extent to which these inflows affected the extent of the liabilities under guarantee by the Irish taxpayer; the position in relation to the level of liabilities under guarantee through the bank guarantee; if he is satisfied at the level of liquidity in the banking system here; and if he will make a statement on the matter. [38817/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Credit Institutions (Financial Support) Scheme provides a guarantee for covered institutions until 29 September 2010.

Since it was introduced, the guarantee scheme has been successful in stabilising the banking situation. In the immediate wake of its introduction, I have been informed that the level of deposits received by the covered institutions have largely reversed the liquidity losses in previous weeks with total net inflows of around €25 billion to date. Subject to the rules of the scheme, any net increase in the level of deposits by the covered institutions will also increase the level of liabilities under the scheme. The scheme requires that balance sheet growth of the covered institution is not excessive. The Deputy can be assured that my Department, the Central Bank and the Financial Regulator will be in continuing contact with the covered institutions in relation to their levels of liabilities and liquidity.