Foreign banks apply for guarantee

FOREIGN banks operating in Ireland scrambled for inclusion in the Government’s guarantee scheme yesterday.

Postbank, a joint venture with An Post and Europe’s Fortis; Belgian-owned IIB Bank; and Dutch owned ACC have all applied to join the scheme as have Ulster Bank, Halifax and Investec.

Postbank said the guarantee has the potential to be a factor in consumer saving decisions and on that basis alone, it has been in contact with the Department of Finance to discuss the possibility of inclusion.

The Irish government has said it would consider extending the scheme, which covers €440 billion worth of deposits and debt of six Irish financial institutions, to foreign banks with retail units in Ireland.

National Irish Bank’s parent company, Danske Bank Group said it will participate in a state guarantee provided by the Danish Government and will not be applying to join the Irish scheme.

NIB chief executive, Andrew Healy said: “National Irish Bank customers can now rest easy, as they will be fully covered by the new Danish agreement. This move ensures that our customers benefit from a state guarantee that has a similar standing” to the Irish Government guarantee scheme.

A spokesman from the Department of Finance said once the guarantee scheme is passed by the Oireachtas the government will sit down and look at each foreign owned bank on a case by case basis for acceptance into the scheme.

The guarantee is before Oireachtas this week.