Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 73: To ask the Minister for Finance his exit strategy from the blanket bank guarantee, issued on 30 September 2008; the credit institutions that have issued debt or other liabilities under the extended eligible liabilities guarantee; the amount of liabilities that have been raised to date under the eligible liabilities guarantee; the maturities of same; and if he will make a statement on the matter. [11663/10]

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

As the Deputy will be aware, the Credit Institutions (Financial Support) Scheme 2008 will expire on 29 September 2010. This scheme was introduced following the collapse of Lehmann Brothers and the following liquidity crisis of September 2008. However, the funding situation of Irish banks has improved dramatically in the intervening period and the blanket guarantee will no longer be necessary into the future.

A key feature of the new ELG Scheme introduced in December 2009 is access to longer-term funding, which is in line with the mainstream approach in the EU and is expected to contribute significantly to supporting the sustainable funding needs of the banks and to securing their continued stability. The structure of the ELG Scheme allows participating institutions to issue both guaranteed and unguaranteed liabilities, which will help reduce their reliance on State support over time as financial market conditions continue to improve. AIB, Anglo Irish Bank, Bank of Ireland, EBS, Irish Life & Permanent and the Irish Nationwide Building Society and named subsidiaries are the participating institutions in ELG. Deposits covered by the ELG Scheme at the end of February stood at €108bn, while debt covered by ELG was €37bn. The NTMA provide a comprehensive list on their website of securities which are guaranteed under ELG.