Oireachtas Joint and Select Committees
Thursday, 10 September 2015
Committee of Inquiry into the Banking Crisis
Nexus Phase
Mr. Marco Buti:
It was not a precondition. I think I can be very formal on this; it was not a precondition. It was a proposal by the Irish Government to do so and I think it was wise to have this national component. I think there were a number of reasons behind this decision. Okay, first of all, I think it was important to, as always in these cases, impress the markets. So we tend, when we fix the financial envelope not to be too stingy because I think it would be problematic if then you realise that you have been excessively cautious and you have to go back to the table and increase it later on. So, it is better to err on the largesse side than on the ... so, I think this element here, this additional €17.5 billion helped to make the envelope more substantial. I think there was also a consideration, I believe, on the part of the Irish Government that - to go back to the issue of interest they charged on the loan - that it would be economically not very rational at the time to have in a sense to pay quite substantial interest charges on the EU assistance whilst this €17.5 billion here was remunerated at a very low ... I think so. I think it made sense in a sense to offer this element here. So, this, I think, was the decision was made and I think that it was the right decision. And, again, I stress that it was not an insistence on the part of the troika, on the part of other governments to say, "Well, this is a precondition for granting the assistance".
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