Irish Government guarantee's deposits and bailouts

The Irish government took the unprecedented step of guaranteeing all bank deposits for two years in an attempt to restore confidence

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Deposits are now guaranteed up to €100,000 per person for two years as well as deposit interest rates for large deposits soaring close to 9% in some banks.

Also, the state guarantee's full bailouts for any bank that succumbs to the global crisis in an effort to reverse the loss of confidence in the investment based end of the Irish economy.

Numerous other EU states have shown interest in the idea as a way to regain confidence in their banking systems and may be also be implementing the plan in the future.






[edit on 30/9/08 by Dermo]

Yep, Weve worked too hard to go down the pipe now.
Irish economy FTW.

**Update**

They are now guaranteeing all deposits to an UNLIMITED amount in the six national banks and guaranteeing all other banks to €100,000.

**double post**

[edit on 1/10/08 by Dermo]

Now the Government are saying that the Banks HAVE to give credit to anyone looking for it.. within reason.

All in all, a pretty good idea.

Guarantee deposits and banks.
Demand credit be given.

Flood of liquidity in the market again.

Thank you for your contributions! We need more of this - please keep us updated.

It is now apparent that one country after another is taking measures that have no precedent in history, and the US IS NOT leading the way, because obviously if our plan was so great other countries would be waiting for the Bill to pass and then follow suit.

I don't think anyone anywhere has any confidence in our choices for resolving the problem. Very sad.

because obviously if our plan was so great other countries would be waiting for the Bill to pass and then follow suit.

A general consensus on this side of the water is that even though the US bailout will give extra liquidity to the US markets, it will weaken several currencies by basically dropping $700bn/€500bn of 'fake' money into a handful of economies.

Lets hope it doesn't happen like that.

EU anger over Irish guarantee

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The Irish Government's decision to guarantee the debts and deposits of the country's six largest banks drew a thinly-veiled attack from the Brussels Commission today

After much criticism from the UK government and banks because of loss of deposits and investments to Irish banks, the EU commission has become aggravated with the lack of consultation between the Irish government and the EU over the guarantee, calling it 'Isolationist' and 'protectionist'.

What the EU commission have failed to digest is that the Irish economy was becoming shaky before the "Credit Crunch" as a result of a peak and downturn in the economy in times of a shaky global economy. This guarantee is probably the best option available to the 'knowledge based' Irish economy.