Ireland gets EU approval for 5-yr bank guarantee

DUBLIN Nov 20 (Reuters) - The European Commission has approved Ireland's revised guarantee scheme for bank liabilities of upto five years in duration, Irish Finance Minister Brian Lenihan said on Friday.

Lenihan said the new scheme would be more targeted than the current scheme introduced in 2008 for lenders including Allied Irish Banks (ALBK.I), Bank of Ireland (BKIR.I) and Irish Life & Permanent (IPM.I), and which runs out in September 2010.

"It will apply to certain liabilities (including deposits) incurred by participating institutions during the period upto 29 September 2010," Lenihan said in a statement. "Dated subordinated debt and asset covered securities will not be guaranteed under the scheme."

Lenihan had already indicated he was mulling a new guarantee which would cover maturities of up to 5 years but only for liabilities incurred in an "issuance window" closing at the end of next September. [ID:nLG303573]

(Reporting by Andras Gergely)