Eligible Liabilities Guarantee Expiring 30 June 2012

[Lightning]

The government have requested an extension until 31 December 2012. The EC are yet to respond to the request.

Why do they always leave extensions to the bank/deposit guarantee until the last minute?

From the Indo

Government makes request to extend bank guarantee

THE Government has formally asked the European Commission for permission to extend Ireland's infamous bank guarantee scheme until the end of the year.

The Department of Finance confirmed last night that it had asked to extend the €93bn scheme beyond the end of June on the same "general conditions" that are in place now.

The extension request comes as Greek banks report a massive outflow of deposits with €800m withdrawn last Tuesday alone, while deposits in Spain have reportedly also come under pressure.

 

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[broken link removed]

The Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (the "ELG Scheme") is made pursuant to Section 6(4) of the Credit Institutions (Financial Support) Act 2008 and came into effect on 9 December 2009 and was amended on 29 September 2010. The ELG Scheme provides for an unconditional and irrevocable State guarantee for certain eligible liabilities (including deposits) of up to five (5) years in maturity incurred by participating institutions from the date they joined the scheme until 31 December 2012.

Hence, it would appear that the ELG has been extended.

I guess that the NTMA/DoF got EC approval for a 6 month extension to the government guarantee.

(The NCA still states that the ELG ends on 30 June 2012).

 

[Lightning]

The NCA are now also saying that the ELG expires on 31 December 2012.

It would appear that the EC have approved an extension to the government guarantee.

I will update references to the expiry of the ELG in the best buys.

 

[OPTIMUM]

Do savers really rely on this anymore given that bank bailout funds are in place worldwide and anybody who is worried spreads their cash around ?