# What is the value of sub-100k deposits and does state have enough to guarantee them?



## txirimiri (14 Mar 2011)

Despite Fine Gael's commitment to a joint European approach to the problem of Ireland's debt burden, it has to be assumed that a) the absolute intransigent approach of Sarkozy/Merkel to the interest rate at last weeks' European Council and b) the fact that the latest recapitalisation requirements for the banks now looks to be closer to 25bn than 10bn, means that some sort of unilateral default action is increasingly likely.

This is turn would mean the end of the ELG scheme (either after it runs out on 30 June 2011 or before).

So what we would be left with would be the Deposit Guarantee Scheme for deposits up to 100k.

Is there any information on the total amount held in Irish banks, credit unions and post office that is covered under this scheme? Are there figures or estimates publibly available? In a situation of unilateral default, in which ECB and IMF lending would dry up immediately, would the State have access to sufficient funds to honour the guarantee? And, if not, what happens to the economy and people's day to day livelihood?

Mods - if this is the wrong forum, apologies and please feel free to move to correct forum.


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## Protocol (14 Mar 2011)

Central Bank has data on deposits.

[broken link removed]


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## txirimiri (14 Mar 2011)

Thanks for that link.

Funnily, it doesn't seem to dissagregate the value of deposits as between those covered under the ELG and those covered under the DGS, so I can't work out how much of the 167 billion on deposit as of Jan 2011 is held in sub-100k deposit accounts.


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## Black Rock (15 Mar 2011)

*Protection of NTMA State Savings*

*Yesterday at 7.49pm TXIRIMIRI enquired about *the security of savings in *An Post* ? 

It is not correct to refer to "An Post savings" as An Post does not retain or manage any State Savings™ money but hands it over directly, without delay, to the *Irish Government **under the management of the National Treasury Management Agency (NTMA).*

Full details on the StateSavings ie website in NTMA Brochure 1 on the home page - see following extracts -

*What is State Savings™?*
State Savings™ is the brand name used by the National Treasury Management Agency (NTMA) to describe the range of savings products offered by the NTMA to personal savers. The NTMA State Savings™ products are made available by the NTMA through its agents, An Post and the Prize Bond Company.

*How are State Savings™ protected?*
• When you put money into State Savings™ you are placing your money directly with the Irish Government.
• All State Savings™ money is under the management of the NTMA.
• The repayment of all State Savings™ money is a direct, unconditional obligation of the Government of Ireland.
• Repayment of your money includes principal, interest and bonus payments if due, and in respect of Prize Bonds, cash prizes.
• State Savings™ form part of the National Debt of Ireland which is managed by the NTMA.

• There is *no upper limit *on the amount protected
• There is *no expiry or end date *for this protection

*What is the relationship between State Savings™ and An Post or the Prize Bond Company?*
An Post and the Prize Bond Company are agents of the NTMA in respect of NTMA State Savings™ products.

*What is the National Treasury Management Agency?*
The National Treasury Management Agency (NTMA) is the State agency established under the National Treasury Management Agency Act 1990 to borrow money for
Ireland and to manage the National Debt of Ireland.

*How much money is in State Savings™?*
*End Dec 2010*
Prize Bonds ........................................€ 1.3 billion
Deposit Accounts & Instalment Savings ..€ 2.8 billion
Savings Bonds ....................................€ 4.2 billion
Savings Certs + National Solidarity Bond.€ 4.3 billion
*.................................................Total €12.6 billion* 

Irish savers increased their holdings of State Savings™ by €3.3 billion (37%) in 2010.


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