IMF at odds with EU/ECB over Irish strategy & bank guarantee extension

D

Duth Ealla

Very interesting Editorial in the Fiancial Times.
It comments that last friday there was a little remarked upon extension of the scheme that lets the banks issue their sovereign-guaranteed bonds for up to five years

It also wonders why an 80 billion lifeline cant allow for slower cuts.

So now the Financial Times is in the same corner as Sinn Fein, the ESRI, many economists in saying how are proceeding is part of the problem and not part of the solution.

Instead the FF strategy of burdening the taxpayers and cutting hard is now at odds with the IMF.

The eurointelligence bulletin commented that

"the FT tells us that the IMF has broken ranks with the troika over the balance of the Irish government’s policies. It said the government had quietly prolonged the blanket bank guarantee for another five years, continues to rule out participation of bond holders, and places the total adjustment burden on the taxpayer. While that approach is supported by the EU, the IMF is sceptical whether this might work. The story is interesting, and highly plausible."

article[tt_news]=2965&tx_ttnews[backPid]=901&cHash=174c9aef9e


or type in ft vice tightens into google and you will avoid the pay wall restriction that way
 
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Berty

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I am trying to understand this, does this mean that the IMF did not have an input into this 4 yr plan????
 

Eye of Angkor

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I am trying to understand this, does this mean that the IMF did not have an input into this 4 yr plan????
Of course it had - the €6Bn is only a down payment. What concerns the IMF is where we are going once the 4 yr plan has been implemented. Note that the 4 year plan does not refer to the banks. One of the reasons we are in this mess because of a congenital inability to plan ahead.
 

Berty

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Thanks for explaining that.
 

justme1

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Just in relation to this '4 year plan',outside of 'we had to do,it's all about optics-(which i'm sure we can blame Terry Prone for that word) sh*te'',can someone please explain to me how nailing all the middle income earners/lower income earners in this budget who are now going to keep (if they have any left) money in their pockets/travel to the north etc..,how with more people going to look for SW as more job losses are on route,you could go on all day really but somebody please explain to me how this is going to give growth to the economy etc..etc..without mentioning 'We had to do it'.
 


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