Irish government to guarantee deposits

Business Materials 30 September 2008 12:03 (UTC +04:00)

The Irish government will guarantee all deposits in Irish banks, a statement from the department of finance said Tuesday.

The government had recently announced it would guarantee deposits of up to 100,000 euros (144,000 dollars) and has now extended this to all deposits, reported dpa.

It has also promised to cover all money borrowed by Irish banks from other financial institutions, in essence promising to step in if an Irish bank is in serious trouble.

The finance department said the measure is aimed at removing any uncertainty surrounding banks.

Irish bank shares have suffered major declines amid rumours that a bank might collapse as has happened in the US and Europe.