DUBLIN, Sept 30: Ireland announced a blanket guarantee on bank deposits on Tuesday in a bid to bolster the country’s financial system after a record slump on Dublin’s stock market came amid economic turmoil worldwide.

The move, described as a financial “bazooka” shot by one analyst, triggered a partial recovery on the Irish Stock Exchange Index.

The finance ministry said in a statement that the guarantee, valid for two years and covering six main banks, was necessary given the current global crisis.

“This very important initiative ... is designed to safeguard the Irish financial system and to remedy a serious disturbance in the economy caused by the recent turmoil in the international financial markets,” it said.

The guarantee arrangement would safeguard retail and commercial deposits, as well as bonds, it added.

The institutions involved are Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society.

Analyst Scott Rankin of Irish stockbroker Davy put the value of the guarantee at up to 500 billion euros (720 billion dollars). Ireland’s annual GDP totals 190 billion euros.—AFP