08 SEP 2010

RTE

The European Union has given regulatory clearance for the extended bank guarantee, which is aimed at reassuring investors.

The European Commission said that the Competition Commissioner Joaquin Almunia understands that it is necessary to continue, for the time being, with Government guarantees for short-term bank liabilities.

'He intends to propose a decision to the Commission rapidly after agreeing the necessary modifications to the Irish bank guarantee scheme approved in June and valid until the end of 2010,' an EU statement said.

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