policies that help restore competitiveness and, over the medium - term, provide the platform for realising growth potential. the significant measures already announced in relation to the public finances, in addition to those to be adopted over the coming weeks, signal our determination to make this difficult adjustment. against this general background, the pressures on the irish financial system have intensified significantly. irish banks continue to face very difficult conditions. their share prices have declined dramatically over the past year. the impact of the marked deterioration in the wider economy on the banking sector is a key concern. however, recent government actions with respect to the banking system demonstrate a commitment to take whatever measures are necessary to stand behind the financial system. most recently in this context, the government, in a similar fashion to those in many other countries, announced details of its recapitalisation scheme for the two major domestic banks. this increases the main banks ’ core tier 1 capital ratios, which are regarded as a key indicator of financial soundness. in addition, under the terms of the recapitalisation package, there is provision for a greater supply of credit to the real economy. the two main banks have confirmed their commitment to increase lending capacity to small - and medium - sized enterprises by 10 per cent and to provide an additional 30 per cent capacity for lending to first - time home - buyers in 2009. as part of the recapitalisation package the government announced that it is looking at other possible measures to enhance the stability of the overall financial system. discussions are underway with the other domestic financial institutions covered by the guarantee concerning their respective capital positions. in the context of the six - month review of the guarantee scheme, consideration is being given to adapting the scheme to facilitate longer - term bond issuance. in addition, the government has announced its intention to examine proposals to mitigate the impact of risks related to specific exposures on the assets side of banks ’ balance sheets, in line with ongoing work on this issue at european level. the role of the central bank the central bank has responded to the unfolding crisis in a number of ways. provision of liquidity the irish central bank, on behalf of the eurosystem, and along with central banks globally, has been providing significant volumes of liquidity to the banking sector, since major financial stress began to become evident in autumn 2007. the eurosystem entered this crisis with a relatively broad collateral framework for supplying liquidity to banks. it has made its liquidity more easily accessible for banks by widening

in place between financial stability and prudential supervision. while the specific details have yet to be announced, we look forward to working closely with government and other relevant parties on the full implementation of those reforms, to ensure that our arrangements evolve in line with best international standards and that the new approach is implemented rigorously. both myself and my colleagues are available to take your questions now.