Irish Bank Guarantee extended by 1 Month

**ang** · 31-05-2010, 06:40 PM

This guarantee has so many different forms I'm actually getting confused.

This extention relates to the issue of banks issuing government guaranteed debt with a maturity of up to five years.

The European Commission on Monday approved a one-month extension to Ireland's bank guarantee scheme, which Dublin may well look to extend further before its lenders again start issuing debt without state backing.

Ireland first issued a guarantee for some 400 billion euros of bank liabilities at the height of the credit crisis in September 2008, in what then was one of the most extensive schemes of its kind.

The guarantee, which was originally for two years, was amended last year to allow banks to issue guaranteed debt with maturities of up to five years, but still with a 2010 issue deadline and periodically reviewed by Brussels. [ID:nDUB003114]

The European Commission said on Monday it approved an extension for issuance until the end of June.

http://uk.reuters.com/article/idUKLDE64U1LS20100531

I think I have this right bank issues government guaranteed debt in 2010 and we cover it up to and including maturity in 5yrs time.

**C. Flower** · 31-05-2010, 06:51 PM

Why only for a month, do you think ?

**ang** · 31-05-2010, 07:19 PM

Possibly something in the pipeline EU wide also we have the dail sitting for an extra 3 days in June as DCon has already pointed out.

There are also rumours abound that the ECB are going to drop interest rates so the intention would be banks withdrawing from Market funding and turning to the lender of last resort the ECB who will be only too happy to oblige to save the dreaded Euro.

**disability student** · 31-05-2010, 08:38 PM

Originally Posted by C. Flower

Why only for a month, do you think ?

The EU has been examining the proposal brought up by the Anglo Irish Bank with Dukes at it's side for a long time. From what i understand that Anglo Irish bank are suggesting to split up into 'good' and 'bad' bank. EU hasn't been happy with them since last Nov when they received their proposals.