Initial Participation in Government Guarantee Scheme for Credit Institutions

The Minister for Finance, Mr. Brian Lenihan T.D. has made an order designating the first group of banks and building societies to participate in the Credit Institutions (Financial Support) Scheme 2008 approved by both Houses of the Oireachtas on 17 October 2008.  

Under the Scheme the covered liabilities of participating institutions for the period 30 September 2008 to 29 September 2010 inclusive are guaranteed by the State under the laws of Ireland.

The Minister said "the guarantee has as its central objective the removal of any uncertainty on the part of counterparties and customers and gives absolute comfort to depositors and investors that they have the full protection of the State".

He said that the strict conditions accompanying the guarantee under the Scheme "will ensure that balance sheet growth is measured and in accordance with prudent banking practice, that risk is properly measured and managed and the interest of taxpayers are safeguarded".

The Minister went on to say he expects to make further orders shortly for the other banks eligible to avail of the Scheme.

24 October 2008

- ENDS -

NOTES FOR EDITORS

1.  The order is made under 6(1) of the Credit Institutions (Financial Support) Act 2008

2.  The credit institutions (and their subsidiaries) which have now joined the Scheme are as follows:-

(a)  Allied Irish Banks, p.l.c. and its subsidiaries AIB Mortgage Bank, AIB Bank (CI) Limited, AIB Group (UK) p.l.c. and Allied Irish Banks North America Inc.;

(b)  Anglo Irish Bank Corporation p.l.c. and its subsidiary Anglo Irish Bank Corporation (International) p.l.c.;

(c)  The Governor and Company of the Bank of Ireland and its subsidiaries Bank of Ireland Mortgage Bank, ICS Building Society and Bank of Ireland (I.O.M.) Limited;

(d)  EBS Building Society;

(e) Irish Life and Permanent p.l.c. and its subsidiary Irish Permanent (IOM) Limited;

(f)  Irish Nationwide Building Society and its subsidiary Irish Nationwide (I.O.M.) Limited;

3.  The banking subsidiaries in Ireland which have been invited by the Minister to participate in the Scheme and who are eligible for the guarantee are Ulster Bank, First Active, Halifax Bank of Scotland, IIB Bank and Postbank.