Central Bank statement

“RECENT INTERNATIONAL events have been unprecedented

“RECENT INTERNATIONAL events have been unprecedented. These have had a very significant impact on global money markets resulting in serious consequences for financial institutions internationally.

“The Central Bank, along with its colleagues in the Financial Regulator, has been very closely monitoring developments in the international financial markets and in particular the increasingly negative impact these have had on the availability of funding for Irish credit institutions.

“Following consultation with the Central Bank and Financial Regulator, the Government decided to put in place a guarantee arrangement today.

“This decision was taken with a view to protecting financial stability while also enabling credit institutions to access funds and to provide credit to companies and households.

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“This action by the Irish authorities confirms our commitment to the stability of the financial system. The Central Bank will continue to very closely monitor the situation in the period ahead.”