Alex Salmond calls for savings guarantee

Scotland's First Minister Alex Salmond has repeated his call for the UK to guarantee all Sterling deposits in UK financial institutions.

Germany yesterday became the biggest European country yet to announce that it would guarantee all private savings accounts during the global financial crisis.

Ireland and Greece also announced a 100% state guarantee last week on personal savings.

Mr Salmond said:

“During this period of turbulence, the great danger is to be caught behind events, attempting to defend financial institutions on a case by case basis.

“Now is the time to get ahead of events, guarantee at least sterling deposits and defend the sector as a whole.

“It would send the strongest message of reassurance to all depositors and end the danger of runs on individual institutions.

“The guarantee is implicit anyway from the Prime Minister’s and Chancellor’s statements that they will not allow any institution to fail, and, therefore, to make it explicit under current circumstances is a logical and strong step.

“It does not preclude other action which should be taken but does, as an immediate and temporary measure, build public confidence and allow for a coordinated recovery strategy.”