EU Commission Approves Short-Term Irish Bank Guarantees

PARIS (MNI) – The European Commission has authorized state
guarantees on certain short-term liabilities for Irish banks, valid
until the end of the year, the Commission announced Tuesday.

The Commission said the guarantee scheme would require higher
premiums to be paid by the banks and include safeguards to ensure
minimal distortion of competitiveness.

The Commission “concluded that the scheme is an adequate means to
remedy a serious disturbance in the Irish economy and is as such
compatible with the special state aid rules put in place at the
beginning of the global financial crisis,” the Commission said.

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