Bank Guarantee extended to Dec 31st

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Brian Lenihan has just announced that the Government guarantee for short term liabilities will be extended to December 31st 2010. The guarantee includes corporate and interbank deposits, as well as debt securities. The expiry date for the guarantee was previously Sept 29th (this month).

Statement from the Department of Finance follows.........

Minister announces extension of the short term guarantee

The Minister for Finance, Mr Brian Lenihan, TD today announced that the Government guarantee for short term bank liabilities, including corporate and interbank deposits as well as debt securities would be extended from its current expiry date of 29 September to 31 December 2010.

A State guarantee will therefore be available for both short- and long-term liabilities up to the end of the year. This is an important support to the Irish banking system facilitating their access to both short- and longer-term funding to help maintain the overall stability of the banking sector and complements the broad Government Strategy to restore fully the banking system and maximise its contribution to overall economic recovery.

This modification to the Guarantee was recommended to the Minister by both the Governor of the Central Bank, the Financial Regulator and the NTMA. As is customary the Department will be liaising with the European Central Bank on this measure. An approval by the European Commission under the State aid rules needs to be secured before the guarantee can be extended.

Following the Minister’s meeting with Commissioner Almunia yesterday he is satisfied that Commissioner Almunia is aware of the Irish situation. It is intended that some technical details relating to the implementation of this modification will be agreed with the European Commission in coming days.

The Minister said that:

“I am very grateful for the assistance of Commissioner Almunia and his officials in the European Commission for their open engagement and co-operation on this important issue for Ireland and I look forward to continued strong co-operation in resolving this and other significant issues for the Irish banking system in the coming weeks”

The Minister reiterated that this announcement does not affect retail deposits of up to €100,000 as these deposits continue to be guaranteed under the ordinary Deposit Guarantee Scheme and that Scheme is not time limited.
 


grafter1

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I'm shocked - it's announced on the same day our bonds headed north of 6%!!(albeit settling at a mere 5.98%)

Good timing from Europe (especially for RTE! - they wont have to even discuss bond markets tonight)
 

LDF

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If you keep doing what you've been doing you will keep getting what you've got.

Nobody trusts this government. The guarantee is a joke.
 

bormotello

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It should give enough time for establishment to transfer their capitals abroad
 

Dreaded_Estate

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I'm shocked - it's announced on the same day our bonds headed north of 6%!!(albeit settling at a mere 5.98%)

Good timing from Europe (especially for RTE! - they wont have to even discuss bond markets tonight)
The two probably aren't unconnected.
 

muck_savage

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This is an important support to the Irish banking system facilitating their access to both short- and longer-term funding to help maintain the overall stability of the banking sector and complements the broad Government Strategy to restore fully the banking system and maximise its contribution to overall economic recovery.
Sound familiar anyone?
 

grafter1

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The two probably aren't unconnected.
They are 100% connected as far as i'm concerned.

There were frantic phonecalls between Dublin & Brussels today.

Bringing forward this announcement was obviously the course of action they decided to take.
 

MPB

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So after 2 years and the promise of Bank stabalisation and credit flowing, we are now in the position whereby we need a EU guarantee so that we can continue to guarantee the Banks.

Progress indeed.
 

needle_too

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Another panicked move.

Squeaky bum time!
 

Samell

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Lendahand was told at the outset that this was not the best way to go and he continues, WHY?
Why continue to bail out Anglo? he could have/should have dropped them from the blanket!
 

Dreaded_Estate

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They are 100% connected as far as i'm concerned.

There were frantic phonecalls between Dublin & Brussels today.

Bringing forward this announcement was obviously the course of action they decided to take.

I think the connection could be the other way around.

Rumours of the extension today probably lead to an increase in our cost of borrowing.
 

Tony Liar

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The markets want to know the final cost for the bailout of the builders and bankers. This move just kicks the ball further up the pitch, we are no closer to getting the final cost.

Its the good old FF strategy of "delay and pray". The only corners we should be talking about are not the ones we are turning, its the corner FF now have the country in.

The game is up.
 

MattM

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Oct 6, 2008
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If anything the last few announcements/comments from the two Brians lead me to believe the state is actually very close to default.

FF should be ashamed of themselves and should be run out of office, people must remember who caused this and let it be ingrained in their concious
so they can never ever forget who FF are.
 


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