Mr. Feargal Ó Brolcháin:

It would be an equity investment in the relevant financial institution. The extent of ESM ownership would depend on the contribution made by the member state and whether there was any private sector involvement. In the nature of an equity investment, there are different rules for how one deals with it from the point of view of accounting for it. In any investment the ESM makes it must make provision above that amount, essentially an additional provision, to allow for the possibility of risk. One treats equity investments in a different way from how one would treat loans. They are inherently riskier, which has an impact on the ESM's overall borrowing capacity. It is related to how the credit rating agencies view these matters.