As the Deputy is aware, the Credit Institutions (Eligible Liabilities Guarantee) Scheme or ELG Scheme was brought before the Houses of the Oireachtas earlier today. The ELG scheme was approved in accordance with EU State aid rules on 20 November 2009.
The ELG Scheme is intended to facilitate the ability of credit institutions in Ireland to issue debt securities and take term deposits with a maturity post-September 2010 of up to five years, on either a guaranteed or unguaranteed basis.
As I have previously remarked, the new scheme will be somewhat more targeted, and in this regard dated subordinated debt or asset covered securities issued after the introduction of the ELG Scheme will not be guaranteed either under the ELG Scheme or under the Credit Institutions (Financial Support) Scheme (the ‘CIFS Scheme') .
However, all liabilities guaranteed under the CIFS Scheme, including dated subordinated debt, as at the commencement date of the ELG Scheme will remain unconditionally and irrevocably guaranteed under and in accordance with the terms of the CIFS Scheme, in other words, existing liabilities will remain guaranteed under the CIFS scheme until the maturity of the debt or the 29 September 2010, whichever is the earliest. This continued guarantee of existing liabilities is in accordance with the general nature of guarantees.