Joan Burton (Dublin West, Labour)

Will the Minister set out the proposed additional debt burden of the current ongoing discussions? The Taoiseach yesterday spoke about several possible different types of arrangement. Professor Honohan this morning spoke about a bank bailout in the form of loan facilities. If this is correct – which I believe it is anyway because most of this has already been agreed – it means a further large loan facility will be given largely, if not exclusively, for the banks. The interest rates for the loan facilities from the two European funds, particularly from the Regling fund, will be three-year money. The rates are at least on a penalty point system. As I understand it, Professor Regling's fund attracts at least a 300 basis points charge or penalty over and beyond certain baseline interest rates. That means we are getting three-year money, at somewhere potentially around 5% and upwards. It means that all our debt - which is the problem for Greece and other countries that go into IMF bailouts - gradually shifts therefore-----

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