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Cover for foreign-owned banks to add 45bn to bail-out plan | Print |  Email
Wednesday, 15 October 2008

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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