I propose to take Questions Nos. 93, 183 and 185 together.
Notwithstanding the State's significant shareholding in the bank, Permanent TSB ("PTSB") operates at arm's length from the State in relation to commercial issues. Ultimately the pricing of financial products, including standard variable mortgage interest rates, is a commercial decision for the management team and board of each bank, having due regard to their customers and the impact on profitability, particularly where the cost of funding to each bank, including deposit pricing, is under pressure.
Neither the Central Bank nor the Department of Finance has a statutory function in relation to interest rate decisions made by individual lending institutions at any particular time. However, I can confirm to that PTSB did pass on, in full, the ECB rate reductions announced in late 2011 to customers holding standard variable rate (SVR) mortgages and also reduced further their LTV standard variable rates to align them with the SVR.
As part of the recent Memorandum of Understanding ("MOU") dated 10 February 2012 with our External Partners, it was agreed that the authorities will make a decision on the proposed way ahead for the company by the end of April 2012. Much work has been completed by the new management in PTSB and officials in my Department to develop this strategy for discussion with the Troika over the course of the on-going April review mission. As you would expect the strategy will consider all aspects of PTSB's current and future approach to its business. It would be premature for me to discuss possible outcomes of those discussions at the present time.