Decades to recover without guarantee, claims Hurley

Ireland would have taken “decades” to recover if the controversial blanket bank guarantee was not introduced in September 2008, the then governor of the Central Bank has claimed.

John Hurley issued the stark warning during a wide ranging banking inquiry hearing yesterday which also saw him reveal legislation to nationalise Anglo Irish Bank “was ready” on the night of the guarantee and that the ECB had ordered countries to “stand behind their banks”.

The Central Bank governor from 2002 to 2009 said he was not in favour of a blanket guarantee when it was first raised in a September 18 meeting.