Ireland remove bank deposit guarantee.

fonesolo

Don't know if anyone's picked up on this yet. I find it disturbing. Don't know if anyone else can throw more light on it. But I certainly will be removing what I have there.

marathonic

What I don't understand is how they could even afford to have it in place in the first place....

ColdIron

It looks like an orderly and sensible withdrawal and depositors will still be covered to €100,000 by the more usual deposit guarantee scheme. I'm not sure it ever meant that much in the real world anyway

innovate

The removal of the guarantee will not impact the vast majority of bank customers because deposits under 100,000 euros are covered by a separate guarantee which has been in operation in Ireland since 1995.

What ends is a guarantee for over 100K, which was there to prop up the banks over the last couple of years. These are now seen to be back on their feet again, so this news is good news.

MercenaryMan

fonesolo wrote: »

Don't know if anyone's picked up on this yet. I find it disturbing. Don't know if anyone else can throw more light on it. But I certainly will be removing what I have there.

I believe this just ends the Eligible Liabilities Guarantee (the blanket bank bailout promise.) The older Deposit Guarantee Scheme will still cover amounts up to €100,000 as far as I am aware.

fonesolo

It's not too much the affording of it. It's a guarantee that if a bank went under, the government would protect the savers savings. Much like what happened here with Northern Rock. But with this retraction from the Irish government, people will withdraw their savings & find some where else for it. One of the downsides to this is that a lot people, especially the elderly will keep it at home, risking themselves to burglary & possible injury!!!!!

fonesolo

So the original article on Yahoo is badly written? As i was reading it, I'm thinking the guarantee below 100k is being removed (which affects me) & I'm saying to myself that this can't be logically be the case, but when you read the comments posted under the article, a lot of people seem to be getting the same idea!

dkmax_2

fonesolo wrote: »

It's not too much the affording of it. It's a guarantee that if a bank went under, the government would protect the savers savings. Much like what happened here with Northern Rock. But with this retraction from the Irish government, people will withdraw their savings & find some where else for it. One of the downsides to this is that a lot people, especially the elderly will keep it at home, risking themselves to burglary & possible injury!!!!!

Have you actually read any of the replies above ? The bank deposit guarantee in Ireland has reverted back to the same levels as they are in the UK. There's nothing to see here.

innovate

fonesolo wrote: »

It's not too much the affording of it. It's a guarantee that if a bank went under, the government would protect the savers savings. Much like what happened here with Northern Rock. But with this retraction from the Irish government, people will withdraw their savings & find some where else for it. One of the downsides to this is that a lot people, especially the elderly will keep it at home, risking themselves to burglary & possible injury!!!!!

Have you got any figures to substantiate your gloomy picture? Like: how many people in Ireland have more than 100K Euro in the same financial institution?

Regardless of those figures: there is absolutely nothing that suggests that the FSCS guarantee of £85K would even in the slightest be affected by this announcement.

I hope there is also absolutely nothing that makes any UK depositor think that the government would magic them some money if the FSCS guarantee doesn't cover their deposits.

marathonic

innovate wrote: »

Like: how many people in Ireland have more than 100K Euro in the same financial institution?

Knowing MANY people from across the border in the Republic, most of my friends should be will covered as long as a guarantee of about 100 euro remains in place

innovate

fonesolo wrote: »

So the original article on Yahoo is badly written? As i was reading it, I'm thinking the guarantee below 100k is being removed (which affects me) & I'm saying to myself that this can't be logically be the case, but when you read the comments posted under the article, a lot of people seem to be getting the same idea!

I don't know what article you read, but you can rest assured that the DGS continues to apply to depositors with irish banks.

http://www.centralbank.ie/paycurr/paysys/dgs/Pages/about.aspx