Professor Patrick Honohan:

The exact design ... let me see if I can remember the ... so in order to achieve this capitalisation, you needed to put in an asset into AIB ... into Anglo which was worth something and the something was a calculation that was made but when ... so, I certainly suggested that a Government obligation of some form be put in. I was thinking in terms of a conventional bond but several other people, especially in the Department of Finance and colleagues in the Central Bank, started to look at other advantages.

If you put an asset that was an eligible asset for normal ECB monetary budgetary policy lending, then you ... then they could use it as collateral and they wouldn't have to use ELA. They were already using ELA from February or March, I think, of 2009. So that would have been an advantage. Perhaps the obligation if it was structured in a certain way would not appear as one of the liabilities of the State in the general government debt. That was another objective. There was a third objective which I can't remember so there were three. I mentioned three of four. In the end, I think, it only satisfied the capitalisation that the ... it did end up on the Government's debt and it was not eligible for ECB monetary policy purposes, despite ingenious attempts to make it satisfy.