Ireland ‘had to act quickly’ on guarantees

Report of a FT interview with Ireland's Finance Minister Brian Lenihan following the decision by the Irish government on the 29 September 2008 to guarantee the deposits and debts of Ireland's six largest financial institutions.

He said: Our government and I would have preferred a European approach to guaranteeing confidence and stability of the banking sector, ... But in the absence of a European approach a small sovereign state like Ireland is obliged to ensure the stability of the banks that are orphaned with us.

Irish Times, 2.10.08: State guarantee set to cover foreign-owned Irish banks http://www.irishtimes.com/news/state-guarantee-set-to-cover-foreign-owned-irish-banks-1.890145

ESO: Background information: Ireland guarantees deposits at six banks http://www.europeansources.info/record/ireland-guarantees-deposits-at-six-banks/

BBC News, 2.10.08: French minister knocks Irish move http://news.bbc.co.uk/1/hi/business/7648027.stm

BBC News, 2.10.08: 'No advantage' for Irish bankers http://news.bbc.co.uk/1/hi/business/7648750.stm

Irish Times, 4.10.08: Cowen warns banks over abuse of guarantee scheme http://www.irishtimes.com/newspaper/breaking/2008/1003/breaking76.htm

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