Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 105: To ask the Minister for Finance if it is his intention to further extend the eligible liabilities guarantee scheme beyond December 2010; when will he be reviewing this guarantee to make this decision; if this consideration is being factored into the four year budgetary plan; and if he will make a statement on the matter. [41576/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Eligible Liabilities Guarantee Scheme has been an important support to the Irish banking system, facilitating its access to both short and longer term funding to help maintain the overall stability of the banking sector. It complements the broad Government Strategy to restore fully the banking system and maximise its contribution to overall economic recovery. On the advice of the Governor of the Central Bank, I am extending the issuance period beyond the current end date of 31 December 2010, and on financial stability grounds will be placing an SI before the House shortly which will enable the issuance period to run to 31 December 2011. As the Deputy may be aware, the European Commission today announced the approval of the Scheme under State aid rules.

The Deputy may also wish to note that the ECB has been notified of the intention to provide for an extension to 31 December 2011, and, in its legal opinion of 2 November 2010, has endorsed the approach on financial stability grounds.

In formulating the four year plan my Department has indeed reflected the additional fees that are expected to accrue from an extension of the guarantee scheme.