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

Question 84: To ask the Minister for Finance the findings of the first six month review of the functioning of the bank guarantee; if he will publish this review; if he is satisfied that the guarantee has secured the liquidity situation of the banking system here; and if he will make a statement on the matter. [27973/09]

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

Under paragraph 8 of the Credit Institutions (Financial Support) Scheme, the Minister for Finance may review and vary the terms and conditions of the Scheme to ensure that it is achieving the purposes of the Credit Institutions (Financial Support) Act 2008. The Scheme states that at such a review, the Minister shall consider, inter alia, the continued requirement for the provision of financial support under the Scheme with regard to its objectives and section 2(1) of the Act. This review has been provided to the European Commission as required under the Scheme.

As I announced in my Supplementary Budget Statement on 7 April 2009, it is the Government's intention to put a State guarantee in place for the future issuance of debt securities with a maximum maturity of up to five years.

Following the enactment of the Financial Measures (Miscellaneous Provisions) Act at the end of June which provides a power to extend the guarantee by order beyond its current expiry date of 29 September 2010, work is continuing on the drafting of a Scheme, the introduction of which requires EU State aid approval.

Access to longer-term funding in line with the mainstream approach in the EU and is expected to contribute significantly to supporting the funding needs of the banks and to securing their continued stability. The extended scheme must be approved in accordance with EU State aid rules and discussions are continuing in this regard with the European Commission.