2010 Eligible Liabilities Guarantee (ELG) Scheme

About the 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. The ELG Scheme provides for an unconditional and irrevocable State guarantee for certain eligible liabilities (including deposits) of up to five (5) years in maturity incurred by participating institutions during the period from the commencement date of the ELG Scheme (9 December 2009) to 29 September 2010 (subject to six month review and approval under EU State aid rules) on certain terms and conditions.

The Minister for Finance has appointed the NTMA as the ELG Scheme Operator.

The ELG Scheme was introduced by the Minister for Finance as a measure to maintain the stability of the financial system in the State. The ELG Scheme will be reviewed at least on a six monthly basis to determine whether the financial support provided by the ELG Scheme continues to be necessary.

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, copies of which may be downloaded on this website. 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.

In respect of debt securities incurred by a participating institution after it joins the ELG Scheme, the ELG Scheme provides a guarantee for eligible liabilities for which a guarantee certificate has been issued by the NTMA. Eligible liabilities include:

• senior unsecured certificates of deposits;
• senior unsecured commercial paper; and
• other senior unsecured bonds and notes.

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.

Details of all guaranteed liabilities in the form of debt securities will be available on this website.

There is more information available on the consumer website www.itsyourmoney.ie.