Mr. John Trethowan:

That is a bank loan. It was not done in the Credit Review Office. The number of cases that would have got credit is slightly higher than appears in our figures. However, my objective is not to have scores but, rather, people who are creditworthy accessing credit. It is just that sometimes we have more time to understand the borrower's affairs and strengths and what is on offer than the bank has had in its first pass through.

On legacy debt, we are starting to see some of the refinancing requested being granted. I must stress that the banks are stepping up to the mark and providing finance to get people out of these situations. They are doing their bit. However, as with applications for credit first time round, some businesses provide challenges to the banks' policies on how they do it. We have to try to find a way forward in that regard.

I will give an example of a transaction to make the point. At the height of the boom, someone may have bought property for €4 million. It was worth €4 million and the borrower was lent 100% of the cost. That property could have fallen in value by 50% to €2 million.

The hedge fund may have purchased that loan for €1.5 million and will want to take its profit. It will examine the value of the asset today, which might be €2.2 million. The hedge fund people will say that is what they want to take them out of the debt and the person has to find that amount, which means finding a bank that is going to lend €2.2 million against an asset of €2.2 million. To a bank, that is 100% gearing; it is taking the whole risk. If the borrower has no other assets or security he or she can pledge, the bank is then stuck with that. Banks are generally happy to lend up to approximately 70% of a loan. They would be looking for somewhere in the region of €1.5 million to lend, and it would be up to the borrower to find the other 30%. That is where much of the challenge arises. The Government credit guarantee scheme and the adjustments that are being made to it can be helpful. Where we can see it is viable but the gearing is wrong, the adjusted credit guarantee scheme will be able to help cover the shortfall if the bank is minded to do it. It helps to close the gap.

On the credit bureau reform question, I will hand over to Ms Collins because she knows a lot more about it than I. There are some reforms under way. The Central Bank is working on a project which, I think, will deliver a new system in a year or two. Ms Collins will be able to give the committee a bit more of a feel for how credit bureau information is being used.