The Irish Times

EU guarantee scheme protects deposits up to ¤100,000 in value

- PAMELA NEWENHAM

The EU Directive on Deposit Guarantee Schemes has come into effect in Irish law.

The scheme protects deposits up to ¤100,000 in the event of a bank, building society or credit union being unable to repay them.

This maximum protection level is unchanged.

However, the directive introduces a gradual reduction in compensati­on payment deadlines, broadened scope of coverage of deposits across the EU and the provision of improved informatio­n by banks and credit unions to depositors, to ensure they are aware of the key aspects of protection of their deposits by the deposit guarantee scheme

The European Commission yesterday asked Belgium, Cyprus, Estonia, Greece, Italy, Luxembourg, Poland, Romania, Slovenia and Sweden to transpose the directive into national law.

This is the first step in a legal procedure that will end in the commission suing these states if they fail to take action within two months.

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