Irish Minister for Finance announces the end of the Eligible Liabilities Guarantee Scheme
Minister for Finance in Ireland, Michael Noonan, has announced the Eligible Liabilities Guarantee Scheme (ELG) is to end.
The scheme will be closed on March 28th 2013. He commented, “The Irish Banking system failed the Irish people and the mismanagement of the banks and the crisis has cost the Irish taxpayer €62 billion. All of the Government actions since taking office in March 2011, both at home and abroad, are designed to repair this damage and break the negative link between the banks and the State. We are making significant progress in this regard and the ending of the Guarantee for new liabilities marks another step forward.
We feel the time is right and the banking system in Ireland is normal enough to proceed without the Guarantee. The Guarantee was a decision made in an emergency and we have moved out of the emergency ward now. We have moved back to normal conditions.” Mr Noonan said that the banks would welcome the Government decision because the Guarantee was costing them money.
Permanent Bank International Ltd (PBI) is a covered institution. The scheme closes to new deposits at close of business on the 28th of March 2013. Under the ELG, any covered fixed deposit on the books of a participating institution at close of business on the 28th March will be covered by the ELG until its maturity.
Carlton Freegard, PBI’s Managing Director, commented “The news that the ELG is to end is not unexpected. There is a much greater sense of calm in the Irish banking sector. The ELG has done its job very effectively. It has reassured clients during a period of turbulence. Permanent Bank International Ltd is a wholly owned subsidiary of Permanent TSB which is 99.2% owned by the Irish Government.
For more information please click here to view our Question & Answers document.
You can also find out more by visiting Ireland’s National Treasury Management Agency website www.ntma.ie
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