The national authorities also felt that it would not be necessary to use all of the € billion pencilled-in to the loan agreement for bank recapitalisation. The capital required as a result of the aggressive PCAR 2011 stress test of March 2011 was met with about a half of that, thanks in part to the bail-in of subordinated debt holders.
1  2  Without access to the private financial markets, the Irish Government would have had to constrain spending suddenly and drastically. In addition, without support from the ECB it would not have been able to continue in the euro.