Bank Guarantee Scheme

On 29 September 2008, the Government put in place a guarantee arrangement to safeguard all deposits (retail, commercial, institutional and interbank), covered bonds, senior debt and dated subordinated debt (lower tier II), with the following financial institutions: Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the EBS Building Society and such specific subsidiaries as may be approved by Government following consultation with the Central Bank and the Financial Regulator. On 9 October 2008, the Minister extended the scheme to cover Ulster Bank, First Active, Halifax Bank of Scotland, IIB Bank and Postbank.

The arrangement was put in place following advice from the Governor of the Central Bank and the Financial Regulator about the impact of the recent international market turmoil on the Irish Banking system. The guarantee is being provided at a charge to the institutions concerned and will be subject to specific terms and conditions so that the taxpayers' interest can be protected. The guarantee will cover all existing aforementioned facilities with these institutions and any new such facilities issued from midnight on 28 September 2008 and will expire at midnight on 28 September 2010. Total liabilities covered under the scheme amount to approximately 485 billion. Ireland's top AAA rating was re-affirmed by all the major rating agencies following the announcement of the scheme.

Details of the scheme are available here:

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