Six Irish institutions in favour of bank guarantee
25-10-2008
Six Irish institutions have signed up to a government plan to guarantee their operations.
Allied Irish Banks, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society are the institutions seeking the government's help.
Speaking about the plan, the country's finance minister Brian Lenihan said: "The guarantee has as its central objective the removal of any uncertainty on the part of counterparties and customers and gives absolute comfort to depositors and investors that they have the full protection of the state."
In exchange, each of the institutions seeking the state's help will have to pay a fee to the government every year and accept tighter regulation over their operations.
Ireland's economy is now in a recession after it experienced two consecutive quarters of negative growth.
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