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Fri 07 Jul 2010Guarantee extension likely, says ratings firm

RATING AGENCY Fitch has said it expects the Government guarantee scheme to be extended by the European Commission in December 2010 as Irish banks are likely to continue to need the scheme to attract funding after this date.

The guarantee scheme was introduced in September 2008, covering some €400 billion of bank liabilities. The scheme was scheduled to lapse on September 29th this year but last month the commission extended it until the end of this year.

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