Brian Lenihan Jnr (Dublin West, Fianna Fail)

In the absence of the ELG, many of the banks found it difficult to finance themselves beyond 30 September. An amount of senior debt would lapse on that date anyway. It is precisely to avoid that danger arising for the banks that the ELG legislation provided for the option of the bank refinancing beyond that date under guarantee so senior debt could be rolled out in an orderly manner for the institutions. There were some figures in the reply but they were not comprehensive. If the Deputy wishes for further information, it can be provided to her for the amounts involved.

On the separate question of other guaranteed securities arising in addition to the ELG, I made it clear in my answer that there is no question of any dated subordinated debt being extended under any circumstances. It would, however, be a brave man who would predict what would happen in the banking landscape in the next six months in Europe. Clearly any such change would require European approval and the ELG is what we have agreed with Brussels.

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