As Gaeilge
 

Minister for Finance welcomes EU State aid approval for the prolongation of the Eligible Liabilities Guarantee Scheme

 
The Minister for Finance, Mr Michael Noonan, TD today (6 June 2012) welcomes  the EU Commission’s decision to grant state aid approval for the continuation of the Credit Institutions (Eligible Liabilities Guarantee) Scheme, (the ‘ELG Scheme’), beyond 30 June to end-year 2012.
 
The Minister announced in November 2011 that, following a Government decision, he was extending the ELG Scheme for a further period of one year to 31 December, 2012 and that this extension would, as normal, be subject to EU state aid approval every six months which is the maximum period permitted for such approval under the European Commission’s policy on guarantee schemes.
 
As part of this process approval to extend the scheme to end-year 2012 was recently sought by the Minister following the advice of the Governor of the Central Bank and the National Treasury Management Agency.
 
The extension of the ELG Scheme means that securities and deposits incurred under the Scheme before 31 December, 2012, will continue be guaranteed up to maturity (subject to a maximum of 5 years) while existing liabilities also continue to be guaranteed under the Scheme.
 
ENDS
 
Note to editors
 
Link to Commission’s notification approving prolongation of Irish guarantee scheme for credit institutions:
 
Link to November 2011 statement
 
 
The State guarantees certain eligible deposits and debt securities under the Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (SI no. 490 of 2009), as amended.
 
The ELG Scheme, introduced in December, 2009, is not a blanket guarantee but rather guarantees specific issuances of eligible debt securities and deposits (of up to five years’ maturity) placed during the relevant issuance period, which currently runs in national law to 31 December, 2012, for all liabilities under the Scheme.
 
The ‘issuance period’ (or window) for debt or deposits is the period during which a guaranteed deposit can be made or guaranteed debt issued.
 
The European Commission today announced the approval of the prolongation of the Scheme, under state aid rules, beyond 30 June to 31 December, 2012, which is the maximum single period of extension permitted for state aid approval of guarantee schemes. The extension announced today applies to all liabilities covered under the existing ELG scheme including both short term and long term bank liabilities.
 
The participating institutions (banks or building societies and subsidiaries that have joined the ELG Scheme to date) under the ELG Scheme are:
Participating Institutions in the ELG Scheme
 
Institution
Date it received its Participation Certificate
Irish Life and Permanent plc
4/1/2010
Irish Permanent (IOM) Limited
4/1/2010 (Cert. ceased 30 November, 2010)
Bank of Ireland
11/1/2010
Bank of Ireland Mortgage Bank
11/1/2010
The ICS Building Society
11/1/2010
Bank of Ireland (IOM) Limited
11/1/2010
Allied Irish Banks, plc
21/1/2010
AIB Group (UK) plc
21/1/2010
AIB Bank (CI) Limited
21/1/2010
AIB Banks North America Inc.
21/1/2010
AIB International Savings Limited (formerly Anglo Irish Bank Corporation (International) plc
28/1/2010 (Cert. amended 20/9/2011)
Irish Bank Resolution Corporation Limited (formerly Anglo Irish Bank and Irish Nationwide Building Society)
28/1/2010 ( Cert. amended 9/11/2011)
Irish Nationwide Building Society
03/02/2010 (Cert ceased 15/2/2012)
EBS Ltd.
01/02/2010 (Cert. amended 1/7/2011)
Permanent Bank International Limited Irish Nationwide (IOM) Ltd.
03/02/2010
Bank of Ireland (UK) plc.
21/07/2010 ( Cert. amended 15/5/2012) )
 
 
In return for the Guarantee provided under the Scheme, the Participating Institutions pay fees to the Exchequer which are calculated by reference to EU Commission guidelines and which are set out in the Rules to the Scheme.
 
The ELG Scheme does not guarantee dated subordinated debt or asset covered     securities.
 
 The ELG Scheme covers all deposits taken by Participating Institutions unless these deposits fall within the scope of the Deposit Guarantee Scheme. Eligible deposits up to €100,000 are guaranteed under the latter scheme and this scheme does not have an end-date. In such cases, any amounts over €100,000 are covered by the ELG Scheme.
 
Term deposits incurred between the date an institution joined the ELG Scheme and  31 December, 2012, remain covered until maturity (up to a maximum term of 5 years). Notice deposits are covered by guarantee until their date of expiry. On-demand deposits will be guaranteed until 31 December, 2012, by which time the prolongation of the Scheme will fall again to be considered.
 
 
 

 
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