Mortgages.ie - Mortgages and Mortgage Protection Insurance

The government today announced a scheme to safeguard the deposits and debts at six financial institutions in response to turmoil in the capital markets.

The scheme, which guarantees an estimated €400bn (£315bn, $567bn) of liabilities, covers retail, commercial and inter-bank deposits as well as covered bonds, senior debt and dated subordinated debt. Most depositors were already covered by an existing deposit insurance scheme for up to €100,000. But Tuesday's initiative was primarily aimed at easing the banks' short-term funding, which had seized up in recent days.

This is a brave move by the irish Government and one that will bring comfort to the Board rooms of Irish banks.Lets hope the gesture is well appreciated and that the ordinary citizens of the country are the winners at the end of the day.