The
Government has extended the bank guarantee scheme to include foreign-owned
banks with a significant presence in the State. About 10%, or €45bn, will be
added to the €440bn already guaranteed under the scheme. The cover will exclude
inter-company debt between the Irish banks and their parent companies based
abroad. The banks covered under the scheme include Ulster Bank Group, plus its
sister bank First Active; Halifax-Bank of Scotland (Ireland); Belgian-owned IIB
Bank and Irish savings bank Postbank, a joint venture between An Post and
Belgian-Dutch group Fortis.
Last week’s announcement of the guarantee to the
six Irish-owned banks prompted concerns regarding transfers of deposits into
the State. The European Commission said the move to extend the cover would
assuage concerns of European regulators about the plan.
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