Mr. Fergus Murphy:

We do not know who that investor might be at this stage, so much would depend on the investor, the investor's individual ratings, etc. In regard to what Mr. Duffy said earlier, we are looking to build a bank that can stand up in its own right based on what we can control right now. Whatever comes around the corner in terms of ESM, investors or whatever is just that.

At the moment, the funding costs to the bank are about 3%. They are unsustainably high given that there is an ECB rate of 0.75%. We have brought deposit rates down by about 1% during the course of this year, so we are on a glide path to bring those deposit levels, which will be the lifeblood of the new core bank, down to levels where they should be. As the Deputy knows, they have been artificially high.

With all the stakeholders, we will also look at removing the eligible liabilities guarantee at a point in time that is appropriate for the system. There is a significant cost to the bank on an annual basis for the eligible liabilities guarantee. It is about 43 basis points off the net interest margin of the bank on an annual basis. If we want to bring a viable and sustainable bank to an investor going forward, we will have to have a net interest margin of 1.5 plus. Taking 43 basis points off that before one starts is a difficult thing to do. Our net interest margin at the moment is in the mid 80s after the ELG cost. We are planning to bring deposit pricing down and to look at removing the ELG at the right time. Then one starts to get the liability side of one's balance sheet in shape.