The Central Bank of Ireland has paid €9.03 million to 394 depositors of IBRC Ltd under the terms of the deposit guarantee scheme (DGS), which offers maximum compensation to depositors of €100,000 in the event of a bank failure.

The Central Bank said yesterday cheques had been posted out to the depositors of Irish Bank Resolution Corporation, which was placed into liquidation on February 7th by the Government.

The payments cover holders of structured deposits/tracker bonds and deposits confirmed by the special liquidators of IBRC at KPMG.

Deposits reviewed

The Central Bank said IBRC’s liquidators continue to review deposits held by customers who also hold loans in IBRC Ltd to establish if a right to set off applies.

The regulator is also processing applications by small companies. In addition it is seeking information on a small number of client accounts and trust accounts to determine the identity and eligibility of the underlying beneficiaries.

The liquidators are also reviewing a number of uncashed cheques issued by IBRC Ltd to depositors relating to withdrawals from their accounts in the recent past.

The compensation payments made this week have come from the €388 million industry-funded deposit protection account (DPA).

Banks, building societies and credit unions are obliged to maintain funds in the DPA equivalent to 0.2 per cent of their total deposits.

The DPA is used by the Central Bank for any compensation payments due under the DGS.