Michael Creed (Cork North West, Fine Gael)
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I wish to raise four points primarily with Mr. Sheridan and his colleagues in the Central Bank. I thank Mr. Fielding for his presentation.

The director stated in his presentation:

At the end of 2010, the Central Bank issued letters of direction to all lenders directing them to refrain from imposing any surcharge interest or any charge arising on a mortgage account in arrears covered by the code of conduct on mortgage arrears.

Will the director please clarify what is meant by "letters of direction" and their bank status?

I also want the director to comment on the following circumstances. Let us say somebody faced with a financial difficulty after 2010 approached his or her bank and opted for an interest only arrangement on a residential property. What if the interest only arrangement was based on the bank's margins and on the cost of funding increasing? Then when he or she sought a six-month extension of the arrangement it was proposed to increase the margin again. Does the director consider such increases to be in breach of the letters of direction?