Written answers

Thursday, 6 November 2008

Department of Finance

Financial Institutions Support Scheme

5:00 pm

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
Link to this: Individually | In context

Question 51: To ask the Minister for Finance if the credit institutions financial support scheme stipulates that the State will underwrite losses incurred as a result of default as opposed to these losses being recouped from the financial sector itself or if such an informal agreement exists with any of the banks or credit institutions covered by the scheme; and if he will make a statement on the matter. [38818/08]

Photo of Brian Lenihan JnrBrian 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 places a strict obligation on every covered institution to reimburse the Minister immediately for any payment made under the Guarantee in respect of that particular covered institution's liabilities. The scheme also includes the principle that any payment not recovered from the institution concerned will be recouped from the sector as a whole over time in a manner consistent with the institutions long term viability and sustainability. If such a situation were to arise that there was a need to recoup from the sector as a whole, it would be a matter for Government to decide how best to proceed.

Comments

No comments

Log in or join to post a public comment.