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Greek bailout to cost Ireland €4m a year?


seabhcan

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Sep 3, 2007
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We'll have to lend Greece about 1 billion euro at the agreed interest rate of 5%. But we'll have to borrow this cash, and the best rate Ireland gets at the moment is 5.4%, meaning we will lend to Greece at a loss of about €4 million per year per billion we lend.

Do I have my calculations right?

Will this extra billion in borrowing add to our deficit? 1 Billion borrowed equals roughly 1% increase in our deficit.
 


hammer

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Jul 6, 2009
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No, you dont.

€1 billion is a €1,000 million
10% is therefore €100 million
5% is therefore €50 million
 

GDPR

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No, you dont.

€1 billion is a €1,000 million
10% is therefore €100 million
5% is therefore €50 million
Yes he is correct, but unlike you, he's not trying to make the worst of the situation, that probably fooled you into thinking he got it wrong.

Still, he fooled you into thinking. Winners all around so.
 

Malbekh

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Yes he is correct, but unlike you, he's not trying to make the worst of the situation, that probably fooled you into thinking he got it wrong.

Still, he fooled you into thinking. Winners all around so.
No, that's not the worst situation. The worst situation is that we loan 1.3b and Greece defaults in 2011, paying us back 50% of the loan, subject to where the EU bond is placed interms of seniority.

That would be the worst situation.
 

rockofcashel

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Yes he is correct, but unlike you, he's not trying to make the worst of the situation, that probably fooled you into thinking he got it wrong.

Still, he fooled you into thinking. Winners all around so.
Perhaps, but Hammer is correct it'll cost us 55 million, of which we theoretically should be getting 50 million of back from Greece

Though then again, we were supposed to be getting money back for what we lent to re-capitalise banks too.. wonder what we'll get here... 5% ownership of the Acropolis ?
 

MPB

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No, that's not the worst situation. The worst situation is that we loan 1.3b and Greece defaults in 2011, paying us back 50% of the loan, subject to where the EU bond is placed interms of seniority.

That would be the worst situation.
And the most likely.
 

GDPR

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No, that's not the worst situation. The worst situation is that we loan 1.3b and Greece defaults in 2011, paying us back 50% of the loan, subject to where the EU bond is placed interms of seniority.

That would be the worst situation.
Are you telling me that if a country defaults to bondholders that someone is at a loss for the money?

I hadn't thought of that, but Jesus, if true, the bondholder would be very shy of buying bonds from that country again, wouldn’t they?

I'd been led to believe that this defaulting business was a pain free process, but think again says you, fair enough so.
 

cyberianpan

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As Malbekh says the danger is on the default

Also I expect that this show of strength, will in fact reduce our cost of borrowing... as the markets will realise that Germany will prop us up rather than let us default. Though PIS will have to behave, as they are too big for Germany to painlessly prop up.

cYp
 

Malbekh

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Are you telling me that if a country defaults to bondholders that someone is at a loss for the money?

I hadn't thought of that, but Jesus, if true, the bondholder would be very shy of buying bonds from that country again, wouldn’t they?

I'd been led to believe that this defaulting business was a pain free process, but think again says you, fair enough so.
I'm not happy with the way this weekend has gone either, your pessimistic surmise turned out to be correct.
 

GDPR

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I'm not happy with the way this weekend has gone either, your pessimistic surmise turned out to be correct.
Unfortunately so, but they all gave of their best, no one can ask more.

Connaught deserve better, I hope the get it. The three injury losses for Munster was too much in such a big game and Leinster really haven't played well all year, so that result was on the cards.

Nonetheless, like the eejit I am, I'll be buying Leinster bonds again next year.
 

Catalpa

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Perhaps, but Hammer is correct it'll cost us 55 million, of which we theoretically should be getting 50 million of back from Greece

Though then again, we were supposed to be getting money back for what we lent to re-capitalise banks too.. wonder what we'll get here... 5% ownership of the Acropolis ?
A nice Greek Island

- our President can use it as a Winter Residence.:D
 

myksav

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May 13, 2008
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No, you dont.

€1 billion is a €1,000 million
10% is therefore €100 million
5% is therefore €50 million
The 5% isn't the problem, it's the 0.4% above that that is the problem and that does make for 4 million a year extra we'd be paying.
Basically, we'd be paying 4 million more than Greece will be paying for the same money.
 

Catalpa

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The 5% isn't the problem, it's the 0.4% above that that is the problem and that does make for 4 million a year extra we'd be paying.
Basically, we'd be paying 4 million more than Greece will be paying for the same money.
Seriously high chance that we will never see this money again...

BTW its not to bail out Greece but to bail out their Bondholders

- of which French and German Banks constitute a large chunk of the investors.

Now we are bailing out the Foreign Banks as well...:rolleyes:
 

John Kalahan

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Jan 5, 2008
Messages
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Its unlikely that the Greeks will be able to pay us back

Its unlikely that the Greeks will be able to pay us back.

Forget about Greeks bearing gifts, it will be a matter being wary of Greeks accepting gifts.

Hard to see them being able to afford the interest let alone repay the debt.

Looks like Gunther is about to swallow lots of inflation as the printing presses are being wound up to full operating speed.

Gunther has committed to printing our way out of this mess and in about a year he will be printing for us( we won't be paying it back other than by eroding the value of our savings)
 

kerdasi amaq

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Aug 24, 2009
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How much money will the Greeks have to borrow to bail us out?

We should leave the European Union!
 

Outlander

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ECB forced into 'U' turn on Greek borrowing: analysts
FRANKFURT, May 03, 2010 (AFP) - The European Central Bank made a sharp "U" turn on Monday in accepting junk-rated Greek bonds in exchange for loans, but made the best of a bad situation for its credibility, analysts said.
The bank took a major step by announcing that it was suspending rules and conditions under which holders of Greek government bonds can use them as guarantees when applying to borrow precious central bank money from the ECB.
The landmark decision came in central bank terminology.
The bank's governing council "decided to suspend the application of the minimum credit rating threshold" on Greek bonds and other debt instruments "until further notice," an ECB statement said.
On January 14, ECB president Jean-Claude Trichet had declared: "We will not change our collateral framework for the sake of any particular country.
The problem with this printing press is that garbage in could lead to garbage out.
 

The Field Marshal

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As I said before ancient Greek culture mated with a flesh eating zombie and produced modern day Greek society.

The sooner this turd of a country is cast into outer EU darkness the better for all concerned.
 

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