Brian Cowen (Laois-Offaly, Fianna Fail)

The reason there is no precedent is that we are the first country to utilise funds under this new finance mechanism. That is the first point. It is easy to know why there is not a precedent; this is the first time this money has been provided for this purpose.

Second, in the cases of the other aid that was provided to the countries the Deputy mentioned, whether humanitarian or other restructuring aid, the EU was not acting as a lender of last resort. This is the first time this has happened. Similarly, the Greek situation, which predated the decision of the ECOFIN Council in May on the terms upon which this aid would be disbursed, was a bilateral loan arrangement between countries and was at rates similar to this loan. Indeed, the Greeks are looking for the terms we have obtained. They would like a longer timespan for the availability of funds than was granted to them under the bilateral aid package.

Third, the general provision based on lending in a last resort situation will apply to this loan and to any future loan, should that arise for any other country. This is the first time a loan has been given in a last resort situation and the terms are based on the ECOFIN decision of last May. The rate has been calculated at a level to ensure it acts as an assistance to us but, given that the IMF is recognised as the cheapest international provider of credit, the European Financial Stability Mechanism, EFSM, money is at the same rate - 5.7% - as the IMF money.

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