Arthur Spring (Kerry North-West Limerick, Labour) | Oireachtas source

I am not suggesting that is the case now. However, potentially, a proposal legitimatising an increase in a portfolio bought through a SPV, special purpose vehicle, which has difficulties with some of its loans, could be put to the Central Bank. The SPV is isolated in its entity. A great many conditions exist between the originator of the loan and the equity from whoever bought it. The equity firm cannot make onerous demands of the provider and the originator of the loans as it could damage their reputation. Will a provision be introduced where the originator of a loan cannot hike up interest rates and they are kept at an average? I am concerned that an argument could be made to the Central Bank that a SPV is not making money and interest rates on the loans within it need to be hiked up.