Written answers

Tuesday, 26 January 2010

Department of Finance

Financial Institutions Support Scheme

8:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 240: To ask the Minister for Finance the position regarding the State guarantee of customer deposits in participating institutions beyond 30 September 2010. [3596/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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Under the Eligible Liabilities Guarantee (ELG) Scheme, which commenced on 9 December 2009 following Oireachtas and EU State aid approval, deposits taken by a participating institution under the Scheme between the date that the institution joins the Scheme and 29 September 2010 are guaranteed subject to six-monthly approval by the European Commission under State aid rules. Term deposits can have a maturity which extends beyond September 2010. The maximum maturity allowed for in the Scheme is 5 years. A list of the institutions that have joined the ELG Scheme can be found on the website of the NTMA (www.ntma.ie) who act as operators of the Scheme on behalf of the Minister for Finance.

The deputy should be aware that in any event most deposits will continue to be guaranteed under the existing statutory €100,000 Deposit Guarantee Scheme (the "DGS") which covers 100% of retail deposits with all credit institutions authorised in Ireland (including credit unions) up to a maximum of €100,000 per qualifying depositor per institution. The DGS does not have an end-date and will continue to apply after 30 September 2010.

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