Brian Lenihan Jnr (Dublin West, Fianna Fail)

If the Deputy is suggesting we should look at the option of guaranteeing the loans, irrespective of the consequences in terms of the repayment of the loan, a guarantee means, of course, just that. I believe we must proceed with great care in this matter. There may be some scope, however, for guaranteeing arrangements which facilitate the flow and repayment of credit. I have asked the credit review office to examine this and I understand it is in discussions with the Department of Enterprise, Trade and Innovation, about the scope for such arrangements.

On the question about the national recovery bank, we would all like to see a national recovery bank but the reality is they are having great difficulty raising money in this State. Our interest rates at one stage, prior to the announcement at the end of September was 6.9% on ten-year money and it has fallen far closer to 6% as of today. It is even at higher rates that the banks must raise money because the cost to the sovereign of raising money is always cheaper than to banks. Clearly, the national recovery bank or any bank, will have great difficulty raising funds at those sort of levels. This is the reason we have to focus on this important-----

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