Deposits made with Bank of Ireland’s Isle of Man arm will not fall under Ireland’s expensive government guarantee scheme from August 10th as part of the lender’s efforts to cut its funding costs, the Government said yesterday.

The bank in March withdrew its British arm from the scheme and said it was moving on other initiatives to wean itself off it.

In a notice published on the website of the National Treasury Management Agency yesterday, Minister for Finance Michael Noonan said he had agreed to amend the rules of the guarantee scheme at the request of Bank of Ireland (IOM).

The domestic operations of Ireland’s covered banks remain under the aegis of the guarantee. – (Reuters)