Brian Lenihan Jnr (Dublin West, Fianna Fail)

Yes, it is the basis but it is not in itself the formal letter of intent.

Deputy Morgan asked about the issue of the contingent character of the funds and Deputy O'Donnell also touched on this point when he asked for a breakdown between the different facilities. A precise breakdown between the facilities has not been agreed.

In reply to Deputy Morgan question regarding the contingent character of the funds, they are contingent in two different respects. First, in respect of the funding of the State, the funding of the sovereign and its central fund, the position of course is that the State can go to the market and raise funds. It does not need to rely on the facilities that may be agreed. That is the position with regard to the funding of the State itself. Therefore, the funds remain contingent to the extent that the State has a borrowing requirement that it can meet from funds it raises itself.

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