AIB welcomes announcement by the Minister for Finance of the ending of the Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (ELGS)
Allied Irish Banks, p.l.c. ("AIB") notes the decision of the Minster for Finance of the ending of the ELGS for new liabilities as and from midnight on the 28 March 2013. AIB welcomes this decision which further demonstrates the ongoing improvement in the stability of the financial system in Ireland. As disclosed in AIB's Interim Management Statement in November 2012, AIB's funding position has continued to improve due to customer deposit flows, progress in deleveraging, coupled with successful returns to the funding markets both in 2012 and January 2013.
David Duffy, AIB CEO, said:
"The ELG was introduced as a measure to stabilise the financial system at a time of unprecedented market turbulence, which is no longer evident. We welcome the announcement today and expect that this move will have a positive impact on the operating performance of AIB over time as the bank returns to long term viability."
The existing Deposit Guarantee Scheme (DGS) is unaffected by this announcement. The DGS guarantees deposits of up to EUR100,000 per qualifying depositor (EUR200,000 for joint accounts) per institution in a bank or credit union. This scheme is open-ended, with no expiry date. In general, it covers deposits held by private individuals as well as by sole traders, partnerships and small companies.
Further information is available in the following documents:
If you have any further queries, please contact your local Branch or Business Centre.