‘Safety net’ for €37bn bank debt

DEBT topping more than €37 billion is covered by a state safety net for major banks, Finance Minister Brian Lenihan revealed.

The eligible liabilities guarantee (ELG) covers AIB, Anglo Irish Bank, Bank of Ireland, EBS, Irish Life & Permanent and the Irish Nationwide Building Society and named subsidiaries which have a total of €108bn deposits secured by the scheme.

The admission came during a stormy debate on the Finance Bill which saw the Dáil suspended due to a row in which Labour and Fine Gael accused the Government of bending parliamentary rules by re-introducing an amendment the opposition believed ministers had already agreed to which would have forced a cost benefit analysis to be carried out of tax changes provided for in the bill.