Brian Cowen (Laois-Offaly, Fianna Fail)

On the first point Deputy Gilmore raised, as it happens the figures quoted in the newspapers this morning suggesting potential loss rates on foot of supports to the banking industry for Ireland do not appear in the IMF's final global financial stability report. I understand there was a figure in an earlier draft which the IMF did not use in the end. These figures should not be relied on as a measure of the likely cost for Ireland or any other country, although, from the point of view of the IMF, they may well be of use in calculating financial strains at a global level. The particular figures appear to be based on more or less mechanical application of various modelling tools, with a heavy reliance on technical assumptions. They do not represent the outcome of a specific examination of Irish banks' assets such has been carried out on behalf of the Financial Regulator by PricewaterhouseCoopers.

The principal reason the IMF approach gives a relatively high figure for Ireland is that our bank guarantee arrangement is broader ranging than that in other countries and our financial sector is larger relative to the economy. Obviously, we are open at all times to discussion with international institutions about technical assumptions they apply to the Irish case, but in the current case we are far from convinced that there is a significant new or additional informational value in the figures presented from a national point of view.

I understand from media reports that, following contacts with the UK authorities, figures on the UK in the final report have also been amended.

On what Professor Krugman or any other eminent economist or number of economists might be saying about the banking system, we are very much of the view that we stand ready to assist in relation to financial institutions of systemic importance. The question of impaired assets and how one deals with assets in this situation will be in line with the EU guidelines in these matters. The tool kit available to us is the same as that available to other countries.

As the Deputy will be aware, we have already provided support on the basis of getting a return for the taxpayers' money that we have invested in preference shares thus far. The Minister for Finance has indicated that, in the event of there being any further requirement for us to invest in any banks of systemic importance, we would obviously look to ordinary shares in the future.

It is also important to recognise the value that the market disciplines provide in terms of how we are viewed internationally in the banking system in the absence of a total nationalisation of the entire banking system in Ireland, and how that would be seen internationally. We have already seen the nationalisation of Anglo Irish Bank and a substantial shareholding taken by the Government - by the public - in Bank of Ireland and soon in Allied Irish Banks as well.

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