Restructuring of the banks as long as the guarantee was in effect was inhibited by the fact that any significant restructuring was likely to trigger an immediate entitlement for immediate payment in cash of all bondholders under the terms of the guarantee.
Why do we as a panEuropean public authority engage in these types of projects? The Eurosystem is both a panEuropean public authority and, in its capacity as a central bank, an active market participant, and, therefore, generally in a good position to act as a catalyst for private sector activities which encourage European financial integration.