Brian Cowen (Laois-Offaly, Fianna Fail)

We are presenting to the Central Bank bonds which will be backed by assets on the basis of the reduced value NAMA will pay for them. The first losses will be taken by the banks and creditors. No matter how many times the Deputy says it, I will still keep saying what the true situation is.

As regards the question of how we deal with providing sufficient credit to the economy, it is by taking the decisions we have taken. Reducing the cost of Government debt, first of all, has reduced the cost to taxpayers. International confidence in the direction we are taking is providing funding to the Irish banking system on an ongoing basis. The fact that NAMA will be operationalised will provide further evidence of the Government's determination to proceed along the lines we have outlined. It is clear that by using the NAMA mechanism and bringing those distressed assets on to NAMA's books, we will be in a position in which banks will be able to obtain funds on international markets in addition to whatever capital they have themselves.

As we have outlined, there will be a recapitalisation programme involved. We will deal with all of that comprehensively. That is the only way we will get to a situation where we have a pathway to recovery and where banks get back to the core franchise of providing loans to the productive sector.

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