6.7 % rate for the bailout.

eoinbn

Hopefully this is just spin to make the government look good when they announce a 5% interest rate...................

Butch Cassidy

Here do yis reckon we could pay them back in cheese? Wee blocks of cheese each month as payment?

tomdeere

eoinbn wrote: »

Hopefully this is just spin to make the government look good when they announce a 5% interest rate...................

5% is still shocking bad the game is up
:mad:

Butch Cassidy

eoinbn wrote: »

Hopefully this is just spin to make the government look good when they announce a 5% interest rate...................

But how likely is that? How many people watching that news broadcast will balk at 6.7% ?
Anyone who watched the Vincent Browne shows might but most will be preoccupied with Tubridy's Xmas now...

I dunno. Doubtful it's spin.

Bob_Latchford

ArtSmart wrote: »

i guess VB will make up the shortfall unfortunately.

I can hear steam coming out of VBs ears from my house already.

ArtSmart

SkepticOne wrote: »

My thinking is that it buys a bit of time. Sure we can't afford to pay it back but we can still spend a bit of time drawing the money down and putting it into our banks honouring the Croke Park agreement etc. From the EU's point of view it sends a message to the likes of Spain, Portugal etc. that a bailout won't be an easy option and they should seek to cut their deficit as much as possible.

Then in a couple of years, Ireland can seek a restructuring of the debt run up in the current bailout. That may be the thinking behind it if we are to assume there's benign reasoning at work.

On the other hand it could simply be that other European states are just unwilling to lend to Ireland unless the rates are very high. They would rather not lend at all really. This second possibility is more likely in my opinion.

a deal will be a deal. and will have to be treated as such. whether it's a message or not.
besides, a 'couple of years' at this % rate and we're fooked.

tomdeere

Bob_Latchford wrote: »

I can hear steam coming out of VBs ears from my house already.

But why, but but why, you guys and it was u guys,

Tomohawk

Truly the last days of the Reich....we're finished.

bleg

"Announce it just before the Toy Show! The plebs will be so focussed on Ryan they'll forget about how ****ed they are!!!"

bleg

6.7% rate rejected:

http://www.irishtimes.com/newspaper/breaking/2010/1126/breaking6.html

TheInquisitor

I had to look 3 times and read the article twice on RTE. If our interest rate is anything close to 6% thats Ireland screwed for decades.

Our country would look like paradise today compared to what it could look like in 10 years if we have to pay those rates. Ireland would be better off going bust than taking a loan. The conditions attached to a rescue aren’t worth it: Once it takes EU money, it will never get off the hook. And the Irish banks aren’t worth saving anyway. Defaulting on your debts is a far less scary prospect than usually portrayed.

THIS CANNOT HAPPEN. Im just shocked , completly shocked at that rate of interest. This is Germany , England and France just trying to protect their banks who are the major bondholders of Ireland and the Irish banks.

Im starting to think this guy is right about defaulting

Ireland would be better off going bust than taking a loan. The conditions attached to a rescue aren’t worth it: Once it takes EU money, it will never get off the hook. And the Irish banks aren’t worth saving anyway. Defaulting on your debts is a far less scary prospect than usually portrayed.

http://www.bloomberg.com/news/2010-11-23/bust-is-better-than-a-bailout-for-irish-patient-matthew-lynn.html

delonglad

bleg wrote: »

"Announce it just before the Toy Show! The plebs will be so focussed on Ryan they'll forget about how ****ed they are!!!"

that isn't even an over statement, its so through. I'm in Eindhoven and I can see whats going on with the country, was talking to a few of the lads on fb and they haven't a clue. Their off to watch toy show or play cod! Country is ****ed!

There needs to be more than protest tomorrow!

bleg

"We can't have an election because it will affect the talks with the IMF/EU."


We'd be better off with those talks "affected."

hotmail.com

bleg wrote: »

6.7% rate rejected:

http://www.irishtimes.com/newspaper/breaking/2010/1126/breaking6.html

This is just reflecting the RTE story.

RealityCheck

My take on it is that its an intentional leak. Would be very surprised if its not between 5 and 6%. Maybe around 5.25%. Now that would be bad but if it does end up at 6.7% there's absolutely no way there will be no soveirgn default. Tall challenge even at <5%.

poolboy

Correct me if im wrong but isnt 6.7% over 9 years a better rate than 5% greece got over 3 years

Absurdum

RealityCheck wrote: »

My take on it is that its an intentional leak. Would be very surprised if its not between 5 and 6%. Maybe around 5.25%. Now that would be bad but if it does end up at 6.7% there's absolutely no way there will be no soveirgn default. Tall challenge even at <5%.

if this is FF trying to play politics, they deserve to be shot

ArtSmart

bleg wrote: »

6.7% rate rejected:

http://www.irishtimes.com/newspaper/breaking/2010/1126/breaking6.html

nothing reassuring in that article. whatsoever.

eigrod

David McWilliams Tweet "6.7% interest rate will kill us, maybe just spin. govt announce 5%ish on sunday and declare a wonderful victory for their great negotiators"

muletide

poolboy wrote: »

Correct me if im wrong but isnt 6.7% over 9 years a better rate than 5% greece got over 3 years

They got 5.2 I think

tomdeere

poolboy wrote: »

Correct me if im wrong but isnt 6.7% over 9 years a better rate than 5% greece got over 3 years

ya 8 billion a year would be great

Absurdum

bollox to this, I'm hittin the beer and the toy show

Inquitus

Absurdum wrote: »

bollox to this, I'm hittin the beer and the toy show

There's something horribly humbling about watching the toy show with your kids knowing you can't afford to buy any of the cool stuff for them.

Inq

Bob_Latchford

Higher rates of interest are attached to longer loans and the nine-year loan being negotiated on behalf of the State will involve a higher interest rate, as the risk of default is considered to be higher.

So they give us money to stop Ireland defaulting, but priced in the cost of Ireland defaulting. Very reassuring to the markets.

This loan has been touted around the bond markets and markets insisted on the including the cost of insurance and thats why VB panelists got it right.

all imo of course

Absurdum

eigrod wrote: »

David McWilliams Tweet "6.7% interest rate will kill us, maybe just spin. govt announce 5%ish on sunday and declare a wonderful victory for their great negotiators"

Karl Deeter: At this point we have to tell eu 'we won't sign away our future, but we'll sign yours 3% or the EMU Project goes bang'

kaiser sauze

Inquitus wrote: »

I normally agree with your POV Scofflaw, but it seems we will have to draw down a large part of this imminently to recapitalise the banks, and will start to incur punitive interest on that portion immediately. We will then have to begin drawing down a portion of the rest in Q1/2 next year as and when we require funds to run the nation. I don't see any chance of us returning to the bond markets at <6.7% until 2012 or perhaps 2013.

I have generally been relatively optimistic that with austerity and MNC driven export growth we might have had a chance to work our way out of this hole without a need to default. At 6.7% this is clearly impossible. I am beginning to think a structured and orderly default is a better option. If this is the way it pans out, I now fear for my 3 childrens future in this country, and will have to give things 12mths and consider options in the UK.

Kind regards,

Inq

We have €20Bn pre-funded to use as capital for the banks if needed.

A draw down on the bailout loan is not necessarily imminent.

BehindTheScenes

Quote:

On Monday, Merkel defended her position behind closed doors to the parliamentary group of her conservative Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU). According to sources who took part in the meeting, she said that aid for Ireland was necessary, but had to be tied to conditions. It was important to atone for the sins of the past, she apparently said.

Source: http://www.spiegel.de/international/germany/0,1518,730578,00.html

This coming from the country that gave us the Nazis. We f@@cked up with money, didn't commit genocide, just took on bank debt.

Anything above 5% and we have problems.

Dotsie~tmp

Absurdum wrote: »

bollox to this, I'm hittin the beer and the toy show

Yeah Im gona go watch the kids of the negotiators play with toys we cant afford for our families.

stackerman

Absurdum wrote: »

Karl Deeter: At this point we have to tell eu 'we won't sign away our future, but we'll sign yours 3% or the EMU Project goes bang'

That should be the line, and we should stick to it. They need us as much as we need them. If they dont like it , its time to default. We may have fcuked things up, but we arent MUGGS :mad:

eigrod

BehindTheScenes wrote: »

This coming from the country that gave us the Nazis. We f@@cked up with money, didn't commit genocide, just took on bank debt.

Just like the IRA, they didn't get what they wanted by use of arms in 2 WWs, so they're now trying the peaceful 'democratic' method.