Fantastic idea. Maybe we could set it up in a port-a-cabin on the old glass bottle site.

“The ELG Scheme was approved by the EU Commission under state aid rules from 1 December 2009. The Scheme, in line with all schemes approved under state aid rules, is subject to ongoing six monthly approval by the European Commission. The Scheme was scheduled for review by the European Commission before 1 June 2010 and in order to bring the review date in line with other European guarantee schemes, the Commission have approved the continuation of the Scheme under existing terms to end June and that the formal review of the Scheme by the Commission will now be completed prior to 30 June 2010.”

That probably helps to explain the deadline the EU chose when the guarantee was first introduced; presumably the middle of this year was meant to be a major milestone in the return to normality. But things have turned out otherwise. And for as long as the ECB board is still fighting over purchases you can be sure that the repos are ongoing.

And holes!

Or the can is too big and heavy to kick any more because it’s full of worms!!

From yesterday’s FT:
“The European Central Bank could start a gradual exit from its ultra-loose monetary policies as soon as July, according to a senior policymaker”
http://www.ft.com/cms/s/0/e89bc588-6c03-11df-86c5-00144feab49a.html

If their tactics are still the same, then it would seem unlikely that they would be willing to extend the ELG much beyond the lifetime of their other liquidity operations.

It could be argued that an Irish government guarantee is a different beast to liquidity operations, but (as I see it), the only reason the Irish state guarantee is worth anything is because of the implicit guarantee the Irish state has from the EU. (like greece Greece, unlike Iceland)

Coincidence that the Anglo-Irish ‘recovery’ (sic) plan sent to the Commission today? Ray of hope perhaps that the Commission sees what the Irish Executive is incapable of seeing (or speaking) as we sink deeper and deeper into the debts of the north Atlantic Ocean ….. or perhaps it was that €2 billion today wot did it?

Any chance the Commission might toss in a Hiberno Bank RESOLUTION as well ……….. JHC …… do we need one yesterday - and not before Sept 2010 …….. who knows what tomorrow may bring?

eh, this is seriously confusing. From the NTMA website.

“About the Scheme

The Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (the “ELG Scheme”) is made pursuant to Section 6(4) of the Credit Institutions (Financial Support) Act 2008 and came into effect on 9 December 2009. The ELG Scheme provides for an unconditional and irrevocable State guarantee for certain eligible liabilities (including deposits) of up to five (5) years in maturity incurred by participating institutions during the period from the commencement date of the ELG Scheme (9 December 2009) to 29 September 2010 (subject to six month review and approval under EU State aid rules) on certain terms and conditions”

And from the actual legislation itself…

“12.1 An eligible liability:
(a) shall not have a maturity in excess of five (5) years; and
(b) must be incurred between the period from the commencement
date to and including 29 September 2010, subject to the
approval of the EU Commission at six (6) monthly intervals,
pursuant to paragraph 5 above. The Minister may amend the
issuance period by order under section 6(3B) of the Act and in
order to ensure compliance with EU State aid requirements.”

Basically, if the scheme had not been extended today, the ELG would’ve lapsed for the purposes of new liabilities taken on by the banks as of tomorrow? At no stage have i seen or heard this anywhere. Bizarre.