Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 98: To ask the Minister for Finance the value of the charge made in respect of the bank guarantee for the most recent quarter in 2009 for which he has returns; the rate per cent of covered liabilities it entails; and if all covered institutions are paying at the same rate. [39065/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Under the Credit Institutions (Financial Support) Scheme 2008, each of the covered institutions pays a quarterly charge to the Exchequer which is held in a mandated account in the Central Bank. As of 20 October 2009, there is €548,642,029 in the mandated account. The balance in the account will be returned to the Exchequer.

The charge is paid quarterly in advance and all payments have been made in respect of 2009 which amounts to €437m. Of this total amount, €176m was paid in October 2009.

As the Deputy is aware the latest audited and verified figures for covered liabilities which were recently published in Iris Oifigúil, amount to €275.3 billion. The latest charge received in respect of the last quarter of this year would be equivalent to 0.065% of the latest published figure for covered liabilities and this would be equivalent to 0.26% on an annual basis. But as the covered liabilities can vary on a daily basis, this unaudited figure should be regarded as an estimate only.

In addition to the charge for the Guarantee levied on the covered institutions, institutions under the Guarantee are obliged to recoup the administrative costs of the Guarantee to the Minister. To date payments of €2.5m have been made, covering the period September 2008 to April 2009. There will be further charges made periodically between now and the end September 2010. Administrative costs are received as an Appropriation-in-Aid in my Department's vote.

With regard to the rate the institutions are paying for the provision of the Guarantee, I can confirm that the rates are differentiated to reflect the relative risk position of the covered institution, as set out in Paragraph 16 of the Scheme. Paragraph 22 of the Scheme allows me the discretion to review the application of the charging model every six months. The Guarantee charging model was recently reviewed by my Department to ensure the recovery of the aggregate cost borne by the State as a consequence of the provision of the Guarantee, and to ensure that the overall objectives of the Act are achieved. Given the shortfall in monies raised from the charge to date, the charge factor levied on each institution has been amended and new, higher rates are being applied for the remainder of the Scheme.