Pearse Doherty
Question:196. Deputy Pearse Doherty asked the Minister for Finance the effect the ending of the bank guarantee has on the caps on bonuses applying to bankers. [25660/13]
View answerTuesday, 28 May 2013
Questions (196)
Written answers
As the Deputy will be aware the Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (ELG Scheme) issuance period for eligible liabilities ended at midnight on 28 March, 2013. Eligible liabilities covered under the Scheme which were incurred up to that time continue to be covered up to their maturity date which could be up to 5 years’ maximum from the date the liability was incurred. This means that covered liabilities will wind down over the period 29 March, 2013, to 27 March, 2018, at the latest and for participating institutions that they continue to have obligations to the Minister for Finance, as Guarantor, under the ELG Scheme until the wind down had been completed. There is no linkage between the action taken by the Government on the winding down of the ELG Scheme and incentive payments at the State supported banks. Present Government policy on this issue is, and continues to be, that the awarding or payment of bonuses is prohibited based on the terms of the State’s investment in those institutions.