Seabhcan spots something big here - is he right?
http://www.politics.ie/economy/144353-announcement-joint-eu-imf-programme-ireland-irish-gov-statement-2.html#post3225887seabhcan said:I'm not so sure - I think they are trying to spin it.
The State’s contribution to the €85 billion facility will be €17½ billion, which will come from the National Pension Reserve Fund (NPRF) and other domestic cash resources. This means that the extent of the external assistance will be reduced to €67½ billion.
If drawn down in total today, the combined annual average interest rate would be of the order of 5.8% per annum. The rate will vary according to the timing of the drawdown and market conditions.
Presumably the pensions reserver funds are at 0%, as its already our money. They form about 20% of the total amount. If one fifth of the amount is at zero percent, and the average is 5.8% - what is the interest on the rest of the money? I calculate 7.25%