Is the interest rate on EU money not actually 7.25% taking account of our NPRF

dalywise

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FF is no doubt spinning (with active assistance of Department of Finance) so it will take a few days to come up with the real interest rate. BBC or CNBC will no doubt tell us before FFfm get around to it. Amazing that the Minister for Finance didn't attend the press conference. I wonder why not?
 


nuj

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Starting a thread here about a website mentioning a thread here is a bit OTT.
I thought it was an elegant statement of fatuity.:)

(Morning Ireland last Thursday week ended up reporting that Bloomberg had reported Honohan's bailout remarks - on Morning Ireland, as if legitimacy could only be refracted through other media.

Mind you, in Zerohedge's case, I'd never use the word legitimacy - a one-note doommonger who ocasionally, on the stopped clock principle, hits the right note).
 

Dreaded_Estate

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Our EU partners seemed very reluctant to explain exactly what interest rate we would be paying.
 

Mister men

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FF is no doubt spinning (with active assistance of Department of Finance) so it will take a few days to come up with the real interest rate. BBC or CNBC will no doubt tell us before FFfm get around to it. Amazing that the Minister for Finance didn't attend the press conference. I wonder why not?
He was on the FF channel.
 
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Dept of Finance official appears to be suggesting it's 5.83% interest on the portion of money that's not Ireland's yours (as in from the NPRF).
 

nuj

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Our EU partners seemed very reluctant to explain exactly what interest rate we would be paying.
I think we'll soon be calling them "fellow members" at best. Then "other members". And then "them" or even "these people".
 

seabhcan

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Some said that the NPRF are being counted at 3% interest (?)

If true, that would put the rest of the bailout interest at 6.5% on average.

Also, we were previously told that the IMF portion (~25% of the total money) would be at a lower interest rate. So what is the EU charging us?
The IMF seems to have just said they are charging 4%. That means the EU section is 8.4% !!! Somethings not right.

If you assume the NPRF is excluded, that puts the EU funding at 6.7%
 

Old Irish

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Dept of Finance official appears to be suggesting it's 5.83% interest on the portion of money that's not Ireland's yours (as in from the NPRF).
Yes I agree that we should charge for our money but its hard to explain as its all broken up into segments of different rates which I suppose is clever....don't put all your eggs in the one basket.
 
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Some said that the NPRF are being counted at 3% interest (?)

If true, that would put the rest of the bailout interest at 6.5% on average.

Also, we were previously told that the IMF portion (~25% of the total money) would be at a lower interest rate. So what is the EU charging us?
6.9% as has been said this two days, Europe is sh*tting on ya!
 

Finbar10

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The IMF seems to have just said they are charging 4%. That means the EU section is 8.4% !!! Somethings not right.

If you assume the NPRF is excluded, that puts the EU funding at 6.7%
That makes sense. If one completely excludes Ireland's contribution (cash reserves already borrowed by us and NPRF) and factor in the IMF rate, the rate on the remaining 45 billion EU contribution must be very close to 6.7%. That was the rumored rate only a day or two ago. So it seems at least for the EU contribution that's probably the rate.

Otherwise if Ireland's contribution if factored in the EU rate would be even higher. Allowing for 3% on NPRF contribution (allowing for 3% dividends being lost) and maybe 4-4.5% rate on cash reserves one would get an EU rate of about 7.5%.
 

hmmm

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I love the sight of these little Irelanders accusing the Europeans of screwing us over because they are not giving us a handout. The irony is etc etc
 

nuj

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This stinks.
 

Phoenix_Rising

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Having just watched the 9 0 clock news there I think the interest rate could in fact be 5.8% on the €67.5b.

Cowen said that the average interest rate will be 5.8% and in addition to that Ireland will provide €17.5b

Well, I live in hope.
 

gijoe

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The numbers are:
ESF €22.5billion at 6.4%
EU €22.5billion at 5.7%
IMF €22.5billion at 3.12% but after a range of conversions for length of loan and currency ends up at circa 5.5%

That gives you your blended 5.83%.
 

Finbar10

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Having just watched the 9 0 clock news there I think the interest rate could in fact be 5.8% on the €67.5b.

Cowen said that the average interest rate will be 5.8% and in addition to that Ireland will provide €17.5b

Well, I live in hope.
Well on the rte nine news Sean Whelan figured, if I heard correctly, the IMF 3-4% really equated to 5.7% over the longer period, the money from the EU commission was being charged at 7% and that from the EFSF was at 6.4%. Quite confusing!
 

Breadan O'Connor

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