Dáil Éireann Debate, Tuesday - 7 December 2010
60 Deputy Brian Hayes asked the Minister for Finance of the €42 billion in senior bonds that exist within the Irish banking sector, the reason that €19 billion of this amount is not guaranteed as reported (details supplied); and if he will make a statement on the matter. [45947/10]
Amharc ar fhreagraThe figures for the amounts of bonds outstanding in the Irish banking sector have not been published by the Department of Finance owing to market sensitivities and this response should not be taken as endorsing the figures quoted in the report. The main reason that bonds are not guaranteed under the Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (the "ELG Scheme") is that senior bonds issued prior to an institution joining the ELG Scheme are not guaranteed under the Scheme.
In addition, the ELG Scheme allows participating institutions to issue unguaranteed liabilities, although the amounts under this provision are relatively small to date.
