Irish Bank Guarantee Scheme

The Irish Government's Finance Minister Brian Lenihan has said the bank guarantee scheme introduced last week will be extended to some non-Irish banks with a presence in the Republic of Ireland.

The finance minister said the Ulster Bank, First Active, Halifax Bank of Scotland, IIB Bank and Postbank were eligible. However, the Department of Finance said this only referred to their operations in the Republic. "The subsidiaries in the north fall under the remit of the Financial Services Authority in the UK," it said.

The Government last week decided to guarantee depositors and debts at six Irish financial institutions in a two year deal. The decision in effect means that the Government has decided that the Irish taxpayer will now provide a guarantee for €400bn of liabilities. But there will be terms and conditions.

The banks covered are: Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life & Permanent, which owns permanent tsb, Irish Nationwide Building Society and the EBS (Educational Building Society).