Irish Government Intends To Extend Guarantee Scheme

The Minister for Finance, Mr Brian Lenihan, T.D., has confirmed the Government's intention that the Guarantee scheme for banks announced last week would be available to certain banking subsidiaries in Ireland with a significant and broadbased footprint in the domestic economy.

The Minister said that it is intended that Ulster Bank, First Active, Halifax Bank of Scotland, IIB Bank and Postbank would be eligible for the scheme.

The Minister added that the scheme was in the advanced stages of drafting and would be presented to Dáil Éireann as quickly as possible. The Minister said, "clearly, there will be some additional limitations and safeguards in relation to these operations to ensure that the support provided relates to liabilities arising from their position within the national economy, rather than to their wider group".

The Minister took the opportunity to welcome the announcement yesterday of significant interventions in the UK banking market by the UK Government.

The Minister said that this broadranging package was another indication of the determination of European Governments, signalled at Tuesday's ECOFIN meeting, to provide support to systemically relevant financial institutions.

The Minister noted that EU Member States indicated their determination to take all necessary measures to enhance the soundness and stability of our banking system and to protect the deposits of individual savers.

The Minister said that Ireland would continue to be vigilant to protect the security and stability of its financial system and is convinced of the determination of our partners to do the same.