Just over a week ago property developer and solicitor Noel Smyth suggested the government should persuade the Central Bank to guarantee all deposits in Irish banks operating under a banking licence. It's not quite what happened last week but the effect was the same and Smyth was clearly overjoyed by the decision.

"I'm delighted that clever guys and cool heads took the idea and ran with it," he said, adding that in the short term it will give the lead to other countries to take the same decision. "When the Brits are whinging we must be doing something right," he said.

Smyth believes that domestic banks are now likely to buy the bonds necessary to plug the shortfall in the Exchequer finances this year. "I would be surprised if they don't issue the bonds at home," he said.

Smyth said people needed to understand that at the beginning of the credit crunch there was the same amount of money, "the only thing that's changed is value". "We do not know the value of what's effectively there. Value will always find its level," he said. "Money is going to come back into the system and the bottom line is you'll see the market… moving forward."

Smyth believes the extra liquidity means that bankers will now tell developers to shift units at cost price because they'll now be able to finance new developments at current market values. "They'll say sell it and we'll loan you the money for the next one."

"Stock will reduce and values will come back," he said, adding that he believes banks will lend to developers on the basis that "at the first sign of green ro­ots" they will be able to convert that loan into equity and effectively start repairing their banking system. In short, it's a great idea."

Smyth also believes that the new system should result in the taxpayer benefiting from the bailout, and believes the banks will be forced to pay a part of their loan book back to the Exchequer over the next two years.

Ray Grehan, managing director of the Glenkerrin Group which has residential and commercial property interests in Ireland and Britain agrees.

"It's a very decisive and affirmative move by the Taoiseach and Brian Lenihan to underwrite and instill confidence in the Irish banking sector and hopefully the inflow of funds will provide much needed liquidity to the Irish residential mortgage sector and instill confidence in the property market."

Simon Kelly is a property developer and businessman with investment interests that include the hotel, pub, leisure and technology sectors. He is a member of the Green Party.

"I think it is very visionary of the Government. It's finally showing us great leadership in a time of crisis.

"I think it allows the banks a great opportunity to restructure themselves in the next two years and that will allow Ireland get back on its feet and back in focus.

"Every citizen and every business needs a viable banking sector. The great thing in Ireland is that as a small country we can do all these things quickly. To be fair to them all, it's a great compliment to the parliamentary process, particularly compared to America.

"The country was overly focused on the property industry and this should allow us to focus on internationally traded goods and services. We should use it as an opportunity to fix the balance sheet of the country and to refocus our capital and resources through export of international goods and services."