Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 121: To ask the Minister for Finance if he has drafted a scheme for the extension of the guarantee scheme beyond 2010; if the premium to be charged will differ from that under the existing guarantee; and his plans to present the scheme to the Houses of the Oireachtas. [39139/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy is aware, on 16 September last I published an outline of the main elements of the proposed new guarantee scheme for longer term funding, called the draft Credit Institutions (Eligible Liabilities Guarantee) Scheme or ELG Scheme. The ELG scheme must be approved in accordance with EU State aid rules and discussions are continuing in this regard with the European Commission. The Scheme is also subject to approval by the Houses of the Oireachtas and I plan to bring the necessary legislative proposals before the Dail and the Seanad shortly.

The ELG Scheme is intended to facilitate the ability of credit institutions in Ireland to issue debt securities and take deposits with a maturity post-September 2010 of up to five years, on either a guaranteed or unguaranteed basis.

As is the case for the current CIFS guarantee, the participating institutions in the ELG Scheme will pay a fee for the State guarantee. This fee will be priced in accordance with ECB pricing recommendations and it will be higher than that charged for the CIFS guarantee.