Oireachtas Joint and Select Committees
Wednesday, 31 October 2012
Joint Oireachtas Committee on Finance, Public Expenditure and Reform
Operations and Functioning of IBRC: Discussion
11:10 am
Mr. Mike Aynsley:
Mr. Dukes mentioned the completion of scenario analysis and the different ways this could be used. We regard this very much as a matter for the Government. It goes back to the formation of the promissory note, which was an instrument devised in the absence of an ability to go to the markets to raise cash to fill the black hole created. It was done through the arrangement of constructing a promissory note that could be lodged with the Central Bank ELA facility. It provides cash flow for the bank and has a coupon. It provides a margin for the bank and the Central Bank which sources funding through the ECB.
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