Minister for Finance Michael Noonan has extended the Eligible Liabilities Guarantee Scheme up to the end of 2012.
The extension will be subject to EU state aid approval every six months.
The ELG was introduced in 2009 and replaced the blanket guarantee which was brought in in September 2008. It covers Irish retail, corporate and interbank deposits. It does not cover subordinated debt or asset covered securities.
Today, Mr Noonan also introduced the option of making unguaranteed deposits under the scheme.
This option is confined to corporate and institutional investors, and will be conditional on the depositor acknowledging in writing that the relevant deposit will not be guaranteed under the ELG scheme; the terms of the relevant deposit stating that the deposit will not be guaranteed under the ELG scheme; and the deposit being made after today.
In a statement, Mr Noonan said that while the demand to place unguaranteed deposits is still being determined and may be relatively low at this point, the fact that the participating institutions in the ELG Scheme have made their request (for this option to be available) is a very positive sign of a return of confidence in the banks and the sovereign.
The banks covered under the ELG scheme are: Irish Life and Permanent, Bank of Ireland, AIB, ICS Building Society, Anglo Irish Bank, EBS Building Society, Irish Nationwide Building Society and Irish Nationwide Isle of Man.
