Simple math. You don't need a group of lawyers and teachers to tell you this (perhaps they won't tell you anyway or they cannot figure it out):
Irish GDP in 2009 was 227 billion. The debt is about 60% of GDP (i.e. 136 billion). Now we are taking another 85 billion from ECB/IMF. The total debt will be around 221 billion, roughly the same size of the economy.
How can the Irish people repay the debt? The GDP growth rate is estimated at around 2.5/3% in the next few years (optimistic according to some people) The interest rate of ECB/IMF loans is 5% upwards. So, bascially the Irish nation is borrowing billions at a cost of 5/6% every year and can only produce 2.5/3% growth from the loans it borrows. Is it a death trap?
Irish GDP in 2009 was 227 billion. The debt is about 60% of GDP (i.e. 136 billion). Now we are taking another 85 billion from ECB/IMF. The total debt will be around 221 billion, roughly the same size of the economy.
How can the Irish people repay the debt? The GDP growth rate is estimated at around 2.5/3% in the next few years (optimistic according to some people) The interest rate of ECB/IMF loans is 5% upwards. So, bascially the Irish nation is borrowing billions at a cost of 5/6% every year and can only produce 2.5/3% growth from the loans it borrows. Is it a death trap?