Mr. Stephen Bell:

The way the mortgage arrears document from 30 March is written, it states that in the event that the bank fails to hit the target, it would no longer be able to make any assumption of future cure rates for people who are more than 90 days in arrears. It is very difficult to say, but one would have to assume that in every case 90 days plus in arrears the property would simply be repossessed. All banks, as a matter of international accounting policy, make assumptions about cure rates and they can vary by between 25% and 30%. One is effectively saying that for all of the balances 90 days plus in arrears, a significant proportion would either become an additional provision or additional capital.