Banks to exit state guarantee scheme early next year, says Moran

The head of the Department of Finance said banks will exit the State’s guarantee scheme early next year. However, he expressed disappointment with their level of progress with distressed mortgage holders.

Department secretary general John Moran also said any downward pressure on the economy could lead to an upward assessment of the €3.5bn adjustment needed in the budget next month.

He told the Oireachtas finance committee that considerable challenges remained in his department and progress on Ireland’s finances was dependent on external factors, such as the state of US economy.