Professor Patrick Honohan:

A person might offer it as a solution but his or her bank would make its assessment on the basis of all the relevant information. It certainly could be a solution. We are not encouraging the banks to offer new loans on an interest-only basis, as happens in other countries. What we are discussing are distressed loans which borrowers are currently unable to service. It is within the sort of restructuring required in respect of such loans that what the Chairman outlined could be seen as a sustainable solution. It may not, however, be the best sustainable solution. We are requiring the banks to offer to borrowers the best sustainable solutions available.