Yesterday, the European Commission approved state guarantees for Irish credit institutions covering short-term liabilities, including commercial paper, certificates of deposit, interbank deposits and corporate deposits. The guarantee will expire on December 31, 2010. The Commission believes such guarantees are required in order to "ensure continued access to funding for Irish banks" and in turn contribute to financial stability. In exchange for such guarantees, recipient banks will be required to pay higher fees, as well as abide by certain reporting requirements. A similar guarantee scheme will terminate at the end of September 2010.