Mr. Brendan McDonagh:

I accept that. The carrying value of the portfolio was £1.49 billion. The board of NAMA believed that we could get £1.49 billion but, if we offered it to the market, the minimum we would accept was £1.3 billion. One can get to this by a number of different mechanisms but the board did not believe a 5.5% discount rate was the appropriate mechanism. Instead, it believed a 10% discount rate was appropriate. This is a technical approach. There are going to be losses - it is just a question of when.