Irish bank guarantee ‘rattled’ Europe

IRELAND’S decision last October to guarantee all deposits and borrowings at six Irish banks to prevent a run on the banks rattled governments across Europe, according to a BBC documentary screened last night.

On October 2, 2008, the Government guaranteed all deposits and borrowings at six of its biggest banks to assure customers they could withdraw their money and avoid a bank run.

The decision rattled other European governments because it encouraged depositors to move their holdings to Ireland.