Brian Cowen (Laois-Offaly, Fianna Fail)

Fine Gael claims the ECB will fund the national recovery bank idea, but there is no basis upon which a bank will be funded solely from ECB funds. Were one to seek to obtain funds and chase deposits from other banks in the system, that would clearly increase the demand on funding and increase interest rates. Therefore, the Fine Gael proposals would create an even more difficult situation.

The Governor of the Central Bank and others have confirmed that the approach we are taking is the best possible approach. NAMA is forcing the banks to face up to their losses and take those losses up-front. The policy of the bank has been to indicate that asset disposal and rights issue is a possible means of raising private capital, if it is possible to do so, but obviously the State must stand ready, if necessary, to provide capital as well.

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