‘Banks will be weaned off guarantee in Q1’

Irish banks will be weaned off the Government’s guarantee of deposits over the first quarter of 2013, according to the secretary general of the Department of Finance, John Moran.

The scheme, known as the eligible liabilities guarantee (ELG), expires at the end of this year. Mr Moran says the Government is in talks with the troika about extending it with a view to phasing it out over the first three months of next year.

“We have already started the process of phasing out the ELG. For example UK deposits are not covered by the ELG and banks have now started taking in corporate deposits not covered by the guarantee.”