By Dune Lawrence
Oct. 23 (Bloomberg) -- Ireland's guarantee of deposits for six lenders last month to keep credit markets open has been successful, and the European nation has no exposure to U.S. mortgage assets, Prime Minister Brian Cowen said.
``It's been very effective in that it has brought stabilization to the Irish banking system,'' Cowen said at a press conference in Beijing today. ``We do not have any exposure to U.S. subprime mortgage paper which has been at the source of the instability. Our banks are well regulated, well capitalized and we believe we can get through this period of instability.''
Cowen was accompanied to China by a delegation of about 200 representatives from some 90 Irish firms, the second biggest trade mission in the country's history. He will attend a summit of Asian and European leaders tomorrow and the next day in China's capital city.
Ireland's move on Sept. 30 was to prevent a run on banks and made the government responsible for 400 billion euros ($510.1 billion) in liabilities, while the entire Irish economy is worth about 190 billion euros. The guarantee will last until Sept. 28, 2010, and is being provided at a charge to the banks.
To contact the reporter on this story: Dune Lawrence in Beijing at dlawrence6@bloomberg.net
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