EVERY penny of Islanders’ savings is to be guaranteed by the States, the Council of Ministers have announced.
In a statement released yesterday after two days of top-level discussions, Chief Minister Frank Walker revealed that they would bring a proposition to the States that ‘the bank deposits of Island residents should be fully protected’.
It is widely expected that the proposal will be rubber stamped by the States. States Members are to be called to a meeting on Monday so that the council can brief them on the plans. The announcement brings to an end an anxious few days for Islanders who have watched global markets go into freefall and other jurisdictions, most notably Ireland, guarantee deposits held in their jurisdictions.
The Council of Ministers’ statement said: ‘The Chief Minister and the Ministers for Treasury and Economic Development have agreed that in the face of the ongoing global financial crisis, there is a need for further assurances for Island residents who are understandably concerned about the safety of the deposits they have placed with banks in the Island.
‘With this in mind, and based upon their confidence in the strength of the banking system in the Island, they are, subject to the final approval of the States, giving a guarantee that residents’ deposits will be fully protected.’
Article posted on 4th October, 2008 - 10.00am
8 Article Comments
It’s all very well saying that but when will it happen! Typical of Jersey, state that something will happen but no target date given.
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Do the Channel Islands have enough capital to back this up? How much money is on deposit by residents?… and how much has Jersey got in reserve?
As an added thought, I am also concerned that Iceland, as a non-EU State (like Jersey) that is currently in very serious financial trouble(fortunately at present, unlike Jersey) with a huge finance system built on borrowed debt from other nations, may yet end up having to join the EU to be bailed out. Are we heading the same way?
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I have every faith in the Chief Minister Frank Walker.
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Ok – So the States claim to have the money to gurantee all savings. So WHY has some of that pot not been used to help the needy fa,ilies and elderly on the island? The states simply support the rich and could not care less about the rest of us who could not save even if we wanted to.
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Bridget – you are just winding us up now, arent’t you?
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Tissue Bridget?
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Does the guarantee of compensation for possible loss of savings apply only to Jersey islanders? What about the very many investors who have monies locked up in Jersey banks?
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Dear D. Buchanan,
The answer is simple maths, 100,000 islanders covering £4 billion of investments would be £40,000 for every man, woman, child and OAP.
The fact that some of the £4 billion is in the hedge funds that over inflated the financial markets, why should an OAP be expected to stump up the cash? Assuming they have £40,000 in legal tender that is still worth something. Bring back gold coins that we can test with our teath?
It is all about confidence and our belief, or otherwise, that out council of Misters’ are up to the job.
Bridget M. has faith. We will just have to hope she is right.
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