Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I am giving the Deputy an example of what I think would happen under direct recapitalisation. Of course, I am speculating, but I am doing so on foot of the rule which states decisions will be made on a case-by-case basis and by mutual agreement. In such circumstances, the case must be presented in the first instance and then the decision can be made. In the case of the unknown bank in an unknown country seeking money from the ESM, the governors might decide that it was not even eligible to apply. That could be one set of circumstances. However, we are speculating about future events at a time when the primary modality is not yet in place. That modality will not be in place until November, but we do know the detail of it because it was discussed at several ECOFIN Council meetings. The Irish side succeeded in keeping the issue of retroactive recapitalisation within the regulations at these meetings. That is as far as matters have progressed. As a result of the fact that decisions will be made on a case-by-case bais, there will be no general set-up of rules in place ab initio.