Taoiseach Bertie Ahern took out a bank loan in 1993 despite having savings of £54,000, the Mahon tribunal heard today. But Mr Ahern said the loan was not "free and unallocated money" and this is why he got the loan.
Mr Ahern has returned to the tribunal in Dublin Castle to begin two days of giving evidence about his finances.
Mr Ahern, who has taken a High Court action challenging the tribunal's right to question him about remarks he made in the Dáil about his financial affairs, is facing questions about the sources of funds donated to him and currency transactions into and out of his accounts.
At the outset of today's proceedings Mr Ahern said he opted to take out a bank loan of just over £19,000 in 1993 because his cash savings of about £54,000 was not "free and unallocated money".
He said he took the loan so he could hold on to his savings and "get myself moving again" - to buy a home after his marital separation. He used the loan to settle his own and his wife's legal bills, along with a car loan of about £1,300.
"I wanted to get myself moving again and to work towards getting accommodation for myself. I opted to do that through the bank so I could hold on to my savings," he said.
Mr Ahern is being questioned by tribunal counsel Des O'Neill on his finances in 1993 and 1994. He has previously said he saved the £54,000 over a period from about 1986 and that he kept it in safes at his constituency office in Drumcondra and at his office as Minister for Labour.
He did not operate any bank account in his own name in that period.
The Taoiseach again told the tribunal today that £20,000 of the savings was earmarked for his daughters' education. The sum of £20,000 was lodged to an account for that purpose in August 1994.
Mr Ahern took the stand at 10.30am for the first of two days of evidence. It is Mr Ahern's third session before the tribunal in the past six months.
The High Court case will be dealt with by three judges on April 1st, and a challenge to the Supreme Court is thought to be certain regardless of the High Court's judgment, which is not expected for some weeks after the hearing.
Despite this week's appearance and the High Court case, Mr Ahern must return to Dublin Castle sometime after March 10th for further questions.