Yesterday it was announced that the Eligible Liabilities Guarantee Scheme for Personal and Corporate deposits bank accounts has been extended for a further 6 months effective from 1 January 2011,
The Minister for Finance, Mr Brian Lenihan TD, today welcomed EU state aid
approval for the extension of the Credit Institutions (Eligible Liabilities Guarantee)
Scheme (the ‘ELG Scheme’)
On the advice of the Governor of the Central Bank, the Minister proposes to extend
the issuance period of the Scheme beyond the current end date of 31 December 2010
and will be placing a Statutory Instrument before the House shortly which will enable
the issuance period to extend to 31 December 2011 subject to six-monthly State aid
approval by the European CommissionThe Minister for Finance said:
“The European Commission today announced the approval of the Scheme under State
aid rules to 30 June 2011 which is the maximum period permitted for state aid
approval under the European Commission’s policy on guarantee schemes in the
financial sector.
Today’s announcement is a most welcome development and will underpin the
Government’s efforts to restore the financial system and support the funding position
of the participating institutions in the Guarantee scheme. The Government is
determined to rebuild consumer and investor confidence in our financial system
which has an important role to play in ensuring businesses, and notably SMEs, can
invest for growth.
The approach has now received the endorsement of both the European Commission
and the ECB.”
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