Mr. Cathal Sheridan:

When there is a call on the fund during the transitional period, the first port of call will be to the compartment of the member state in question. If there are still losses to be absorbed, there is then a move to the mutualised element of the other compartments. It has been developed in a way that ensures the mutualisation of the compartments increases rapidly in the early years. At the end of the second year, up to 60% of the other compartments will be used in a given situation. If there was an Irish bank in trouble, some 40% of the Irish compartment would be used in the second year, whereas 60% of the compartments of the other banks would be used. It will work its way through gradually until it is fully mutualised at the end of the eight years.