Jack Wall (Kildare South, Labour)
Link to this: Individually | In context

Question 29: To ask the Minister for Finance if he will extend or replace the bank guarantee scheme upon expiry at end September 2010; his views on whether it is important to signal these intentions to the market as early as possible and that continued uncertainty in this regard is making, and will continue to make, it increasingly difficult for the covered institutions to raise debt with a term extending beyond September 2010; and if he will make a statement on the matter. [12315/09]

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

The Government acted decisively in September 2008 to guarantee, until 30 September 2010, the liabilities of relevant institutions in order to ensure banks could maintain normal liquidity position in interbank lending and debt markets. The guarantee has ensured Irish banks can continue to do their business and that the general public and businesses have been able to deposit with financial institutions in confidence.

The Government is committed to bringing forward proposals, if the need arises, to secure the position of our financial system. In the context of the six-month review of the guarantee scheme to be completed by mid-April 2009, the Government will examine how the scheme could be revised, subject to European Commission approval and consistent with EU state aid requirements, to achieve a reduction in risk overall, including by supporting longer-term bond issuance by the covered institutions.