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Dublin: 7 °C Thursday 12 December, 2019

TDs to vote on extending bank guarantee for another year

The Government is seeking to extend the controversial measure – which it voted against extending while in Opposition.

Michael Noonan
Michael Noonan
Image: Sasko Lazarov/Photocall Ireland

THE DÁIL WILL vote today on extending for another year the controversial bank guarantee agreed in September 2008.

The guarantee is currently due to expire at the end of this year, thanks to an extension agreed in November 2010 – which Fine Gael and Labour deputies opposed at the time.

However, Minister for Finance Michael Noonan confirmed last month that the Government would seek to extend it until December 2012. He said the Government had consulted the European Central Bank on the guarantee, which covers deposits and some senior bonds at participating lenders.

The extension requires approval from the European Commission, which has currently approved the scheme only until June 2012.

When the Fianna Fáil/Green government sought to extend the guarantee in November 2010, Labour’s Pat Rabbitte strongly criticised the move.

It emerged earlier this month tat banks covered by the guarantee had spent almost €7million on legal fees relating to repossessing the homes of boreowers.

Read: Noonan confirms plans to extend bank guarantee>

More: Anglo tops chart for bank spending on home repossessions>

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Michael Freeman

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