Government to achieve Deficit targets by taking two year "Holiday" on Debt interest!

thebig C

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On the RTE 6 O'Clock News it was reported that the Government is to use a clause in EU Budgetary Rules, to take a two year "holiday" on Debt Interest repayments!

This is an excercise similar to that used by Companies whereby some items of expenditure move off balance sheet as they are termed "non cash payments"!

This explains how the Government is to move below the 10% ratio for borrowing, as commentators today such as a representative of the Economic Intelligence Unit were suggesting an €8 Billion cut was necessary!

At best, this just illustrates that FF have really learned nothing as they are still replying on spin and subterfuge to achieve figures and results. At worst they are commiting treason by trying to ensure the next adminstration has to deal with even more trouble in 2 years time!

Ireland to Take 2-Year

Old Seanie Whelan was very impressed......nobody else with an ounce of common sense will be!!!!!

C

MODS: I feel this deserves its own thread, but feel free to merge.
 


thebig C

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Anybody know how to change a title ? I was typing really fast and made an obvious mistake:)
 

gijoe

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Not quite. The €1.5billion interest cash is actually borrowed in 2011 as part of the €3.1billion of borrowing for the promissory notes. However, when it comes to calculating the deficit for 2011 and 2012 using EU rules it is discounted. Smoke and daggers as Bertie would say......
 

thebig C

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Not quite. The €1.5billion interest cash is actually borrowed in 2011 as part of the €3.1billion of borrowing for the promissory notes. However, when it comes to calculating the deficit for 2011 and 2012 using EU rules it is discounted. Smoke and daggers as Bertie would say......
I know, my point is the situation is so bad you'd think they would be beyond trying to pull little stunts and just be honest.
 

Samell

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I know, my point is the situation is so bad you'd think they would be beyond trying to pull little stunts and just be honest.
They will be pulling tricks and wriggling like hooked worms until the day they are kicked out of power and into the 'Joy
 

Mister men

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Is this for real or a pisstake?
 

WTTR

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I know, my point is the situation is so bad you'd think they would be beyond trying to pull little stunts and just be honest.
Wow! There is a spark of hope out there yet! Honesty is a virtue that went missing in financial affairs during the Celtic Tiger era.
 

danger here

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This idea doesn't see so far fetched from FF now [ame=http://www.youtube.com/watch?v=6QrlMzugvG8]YouTube - Apres Match Vincent Browne[/ame]
 

nonpartyboy

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Is there any decision or policy this government hasn't attempted to kick down the road, their only cutting the deficit because nobody will given them any money. Without doubt the worst government in the history of the state.
 

MPB

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Par for the course.

Long term Economic Value, Special Purpose Vehicles, Off Balance Sheet. It is all the same to this lot. If they can pretend for long enough that the debt is not owed, it will become somebody elses problem.

Self serving parasites the lot of them. The bourbons were exactly the same but they eventually got their just rewards. It will be no different here.

A french revolutionary said that it was not the look of fear on the faces of the Royalists as they were led to the guillotine, that he remembered, but the look of surprise.
 

Baddaddy

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I as an accountant saw this being said, this would mean that in 2012 we'll have another €3bn debt burden to heap onto the debt.

This also has the approval of the EU, as it is their guidelines that are being followed.

Begger's belief
 

Tea Party Patriot

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On the RTE 6 O'Clock News it was reported that the Government is to use a clause in EU Budgetary Rules, to take a two year "holiday" on Debt Interest repayments!

This is an excercise similar to that used by Companies whereby some items of expenditure move off balance sheet as they are termed "non cash payments"!

This explains how the Government is to move below the 10% ratio for borrowing, as commentators today such as a representative of the Economic Intelligence Unit were suggesting an €8 Billion cut was necessary!

At best, this just illustrates that FF have really learned nothing as they are still replying on spin and subterfuge to achieve figures and results. At worst they are commiting treason by trying to ensure the next adminstration has to deal with even more trouble in 2 years time!

Ireland to Take 2-Year

Old Seanie Whelan was very impressed......nobody else with an ounce of common sense will be!!!!!

C

MODS: I feel this deserves its own thread, but feel free to merge.
Its also called cooking the books. While it might keep an EU beurcrate happy, you are still technically spending the interest that is accumilating in real terms. The price on Irish bonds will hit a nice 9%+ if they do this.
 

Tea Party Patriot

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I as an accountant saw this being said, this would mean that in 2012 we'll have another €3bn debt burden to heap onto the debt.

This also has the approval of the EU, as it is their guidelines that are being followed.

Begger's belief
Fellow accountant here and in total agreement. But I don't think the bond markets will tolerate it.
 


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