Irish Bank Guarantee

About Irish Bank Guarantee

Ireland guaranteed all bank deposits and bank debt in September 2008. The guarantee covered 440 billion in liabilities, more than twice Irish GDP. Anglo Irish Bank, the most reckless lender, cost Irish taxpayers 30 billion. The banking crisis turned Irelands sovereign debt position from one of the strongest in Europe to one of the weakest. Ireland entered a Troika program with the EU, ECB, and IMF in November 2010, receiving 85 billion in loans. Ireland implemented severe austerity, cutting government spending by approximately 20 percent. GDP fell by 10 percent. Emigration returned. Ireland exited the Troika program in 2013 and recovered faster than other crisis countries. The Irish bank guarantee was later criticized as excessively generous to bank bondholders.