If that’s a 25 year loan (again in simple interest terms) your talking over €200,000 total cost to the lender. Would it not make absolute sense for that lender to write off €100,000
The reason is a matter of logistics. When you deposit your money with a bank they do several things with it. Firstly they usually invest in, but secondly they usually use their investment as security for a loan
In my opinion I think that it is a good sign of what some of the big hitters in the room will be looking for when they sit down to design the new plan for post 2013.