Relating to a Scheme entitled

Credit Institutions (Financial Support) Scheme 2008

(This memorandum is not part of the Instrument and does not purport to be a legal interpretation)

1. Introduction

The Minister for Finance, having consulted with the Governor of the Central Bank (the Governor) and the Regulatory Authority, has made a scheme (the Scheme) pursuant to Section 6(4) of the Credit Institutions (Financial Support) Act 2008 (the Act).

The primary purpose of the Scheme is to maintain, in the public interest, the stability of the financial system in the State and to provide financial support to certain credit institutions or subsidiaries of credit institutions operating in the State (covered institutions).

The Scheme gives effect to the guarantee declared by the Minister on 30 September 2008. Covered institutions will be specified by an order of the Minister and will be required to execute a guarantee acceptance deed within a specified timeframe in order to join the Scheme. Once a covered institution has executed a guarantee acceptance deed, it will be subject to the terms and conditions of the Scheme, as described below, including the requirement to pay a charge to the Exchequer for participating in Scheme.

In making the Scheme, the Minister has had regard to the fact that:

• there is a serious threat to the stability of credit institutions in the State generally, or there would be such a threat if he did not provide the financial support;