ntma.ie Irish Government Eligible Liabilities Guarantee Scheme Ireland : National Treasury Management Agency
Name of the Organization : National Treasury Management Agency
Type of Facility : Irish Government Eligible Liabilities Guarantee Scheme
Country : Ireland
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Website : https://www.ntma.ie/
Eligible Liabilities Guarantee Scheme:
The Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (the “ELG Scheme”) is made pursuant to Section 6(4) of the Credit Institutions (Financial Support) Act 2008 and came into effect on 9 December 2009.
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The ELG Scheme provides for an unconditional and irrevocable State guarantee for certain eligible liabilities (including deposits) of up to five years in maturity incurred by participating institutions from the date they joined the scheme until the closure of the Scheme on certain terms and conditions. The NTMA was appointed by the Minister for Finance as the ELG Scheme Operator.
On 26 February 2013 the Minister for Finance announced the closure of the ELG Scheme to all new liabilities from midnight on 28 March 2013. After this date, no new liabilities will be guaranteed under the Scheme. This does not affect any liabilities already guaranteed as of 28 March 2013.
Participating institutions in the ELG Scheme are credit institutions or subsidiaries of credit institutions which have been approved by the Minister for Finance. Each participating institution is bound by terms of the ELG Scheme, including the Rules of the ELG Scheme (417 KB, PDF format). The Minister stands as guarantor of all guaranteed liabilities of a participating institution, subject to the terms and conditions of the ELG Scheme, the Rules and ELG Scheme Agreements entered into by each participating institution. A list of participating institutions is available at Participating Institutions.
Eligible liabilities which may be guaranteed under the Scheme include:
** senior unsecured certificates of deposits;
** senior unsecured commercial paper;
** other senior unsecured bonds and notes; and
** deposits over the €100,000 limit of the Deposit Guarantee Scheme (DGS) or deposits that do not qualify for DGS protection.
It is also possible for participating institutions to obtain a guarantee certificate for an entire debt issuance programme. All eligible securities issued under a guaranteed programme will be guaranteed. A list of guarantee certificates is available at Covered Liabilities.
Amount Outstanding:
The total amount guaranteed under the Scheme at end March 2013 was €75 billion. Of this amount, guaranteed deposits amounted to €53 billion.
FAQ :
1. What is happening?
The Minister for Finance has announced that, as and from midnight on 28 March, 2013, no new deposits made with Allied Irish Banks (AIB) plc, Bank of Ireland (BOI) plc, Permanent TSB plc, or their subsidiaries EBS ltd. and ICS Building Society will be guaranteed under the Eligible Liabilities Guarantee (ELG) Scheme.
However, all existing and future qualifying deposits made up to and including 28 March,2013, in these banks will continue to be automatically covered by the ELG Scheme, in accordance with its terms and conditions.
In practice, this means that the guarantee will apply until the date of maturity of the deposit. For example, a qualifying deposit existing or made on 28 March,2013, which matures say, two months after that date, will continue to be guaranteed for that two-month period. If in doubt, you should ask your bank to confirm the status of your deposit(s).
2. I am a personal bank customer with account balances of less than €100,000: does the change to the ELG Scheme affect me?
No. If, like the vast majority of bank account holders, your deposits/current account (combined) balance is less than €100,000 per individual per institution (€200,000 for joint accounts), then the change in the coverage of the ELG Scheme will not affect you in any way.
Deposits up to and including €100,000 per individual per institution (€200,000 for joint accounts) are covered by a different scheme, the Deposit Guarantee Scheme (DGS). The DGS has no end date and your monies up to the amounts indicated are protected at all times. Full details of the DGS are given in the answer to question 9 below. You can also find out more about this scheme from the Central Bank of Ireland at www.centralbank.ie or alternatively you can telephone 1890 77 7777.
3. What is the situation for Credit Union members?
Credit Unions are not participants in the ELG Scheme and so are not affected by changes to the Scheme. There is no change in their existing situation therefore –which is that the first €100,000 of an individual’s deposit with a Credit Union is protected under the Deposit Guarantee Scheme.
4. Who then is affected by the change to the ELG Scheme?
Broadly speaking, there are two groups that are affected. Firstly, as and from midnight on 28 March,2013, individual bank account holders who make a new deposit, or renew an existing deposit(s),in a credit institution for an amount greater than €100,000 will not have the balance over this amount guaranteed under the ELG Scheme. As at present however, they will continue to enjoy the guarantee provided under the DGS up to the €100,000 deposit threshold .