The ELG Scheme introduced in December 2009 guarantees specific issuances of eligible debt securities and deposits(up to five years) placed during the relevant issuance period, The current issuance period runs to December 31 2010 but the Minister for Finance, Brian Lenihan proposes to extend this issuance period on the advice of the Governor of the Central Bank.
The Oireachtas is due to approve a draft statutory instrument to enable the issuance period to be extended by one year to December 31 2011 subject to six-monthly state aid approval by the European Commission. The Commission today announced the approval of the scheme to June 30 2011, which is the maximum period permitted for state aid approval of guarantee schemes
The extension applies to all liabilities covered under the existing ELG scheme including both short term and long term bank liabilities.
According to the Minister Lenihan the extension of this scheme 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 participating institutions (banks or building societies that have joined the
ELG Scheme to date and relevant subsidiaries) under the ELG Scheme are:
Allied Irish Banks, p.l.c. ;
Anglo Irish Bank Corporation Limited;
Bank of Ireland;
EBS Building Society;
The ICS Building Society ;
Irish Life and Permanent plc;
Irish Nationwide Building Society; and
Irish Nationwide (I.O.M.) Limited.