Róisín Shortall (Dublin North West, Labour)
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Question 64: To ask the Minister for Finance if he will elaborate on comments attributed to him that he intends to phase out the bank guarantee; and if he will make a statement on the matter. [17222/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In the statement on the banks which I made on 30 March 2010 I announced that I will be seeking the Commission's agreement for a modified extension of the guarantee consistent with a phasing out over a realistic period of time. In line with the State aid approval granted by the European Commission on 20 November 2009 in respect of the Eligible Liabilities Guarantee Scheme, the Commission is due to undertake its six-monthly review of the Scheme on 1 June next.

The timing and exact steps in the phasing out of the guarantee will be dependent on a range of factors, most notably the situation in global financial markets, the funding capacity available to Irish institutions, evolving EU policy on exit strategies for State support to the banking sector generally and from guarantees in particular, and financial stability risks to the Irish banking sector. Following the conclusion of the review process with the Commission I intend to make a firm announcement about the future of the guarantee having regard to all of the important issues.