Although market functioning improved following these actions, spreads on the debt of several sovereigns have widened again to levels that are exceptionally high by historical standards and this is still passing through to bank interest rates in the relevant countries, and adds to the cost and difficulty of rolling over wholesale deposits and debt issuance by banks in the relevant countries.
As I mentioned at the outset, Irish banks became heavily dependent on foreign funding sources at the height of the boom. It will clearly take some time for the Irish banks, like those in many other jurisdictions, to readjust their funding profile. For example, as is well know, the Irish banks have been facing an increase in liability refinancing this month.