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Irish shares stage recovery after new deposit guarantee

Shares on the Irish Stock Exchange have staged a recovery this morning following the Government's decision to guarantee all deposits in Ireland's main banks.

The ISEQ Index was up more than 100 points in early trading this morning after falling by 13% yesterday, the biggest one-day drop in more than 20 years.

Experts say the government guarantee should have a continued positive effect on the markets as the day progresses.

Finance Minister Brian Lenihan says he made the move early this morning to ease difficulties that Irish banks have been experiencing in accessing funds from larger international banks.

He says he consulted with members of the opposition parties before making this morning's announcement and believes the decision will reassure the international system that it can safely do business with Irish banks.

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