Written answers

Thursday, 22 September 2011

Department of Finance

Eligible Liabilities Guarantee Scheme

4:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 71: To ask the Minister for Finance his views on the future of the eligible liabilities guarantee scheme; and if he will make a statement on the matter. [25500/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The issuance window under the Eligible Liabilities Guarantee or ELG Scheme currently runs until 31 December 2011. The guarantee covers both eligible debt and deposits and facilitates access to funding for the ELG banks. The state authorities are examining market conditions and bank funding and will assess the necessity for the continuation of the guarantee.

If I am advised that an extension of the issuance window is warranted I will seek state aid approval from the EU Commission. I would also need to consult with the ECB on any proposal for amendments to the ELG Scheme. Thereafter, I would place a draft statutory instrument before both Houses of the Oireachtas for approval well in advance of 31 December to enable the issuance period in the Scheme to be extended.

I want to reaffirm that debt and fixed term deposits issued during the relevant issuance windows continue to be guaranteed for the duration of the term of the debt or deposits regardless of what happens to the ELG issuance window in the future. Finally, I wish to clarify that customer deposits up to Eur 100,000 are guaranteed under a different guarantee scheme called the Deposit Guarantee Scheme (DGS) and there is no end date on that guarantee.

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