The IMF deal, how much, and why "bailout"?

Podolski1.5

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A few questions need to be answered about the so-called bailout deal between the Irish government, the IMF and the EU.

1. is being referred to as a €85 billion deal even though €17.5 billion of this money is our own, and will come from the National Pension Reserve Fund. Why does the media and the various agencies involved insist on referring to an €85 billion bailout?

2. We are being charged an average of 5.8% interest even though those giving us this loan are only paying around 1.5% on it to international bankers. If is this is a bailout why are these extortion rates being charged? Indeed if it is regarded as an emergency why are we being charged interest at all or not just the 1.5%?

3. In May 2010 Ireland agreed to pay €1.5 billion into the European Financial Stability Facility fund which was in response to the Greek crisis. Why can't we get our €1.5 billion back from the EU now since we need it ourselves?
 


Baztard

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1. Reassure the markets I presume
2. Keep the pressure on others who are in trouble by not giving them an easy option by simply running for help, high interest rates keeps their minds focused on sorting things domestically
3. I understand that we will not now be required to continue our contributions to Greece.
 

collina

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Smoke & Mirrors I'm afraid. From our Leaders & their Masters - Fianna Fail & the ECB
Well "smokes and daggers" according to Lord Drumcondra.

A few questions need to be answered about the so-called bailout deal between the Irish government, the IMF and the EU.

1. is being referred to as a €85 billion deal even though €17.5 billion of this money is our own, and will come from the National Pension Reserve Fund. Why does the media and the various agencies involved insist on referring to an €85 billion bailout?
Well if you were a CEO of a large firm taking over a smaller rival specialized firm, (lets say because this firm had a string to its bow, not available your firm), wouldn't you want to subjugate it through indebtedness? Wouldn't you want to remove all of the smaller firms own resources such that it could exist on leverage solely provided by you? That is the purpose of liquidating the Pension Reserve.

Now let's say the employees of that smaller firm had, over the years, built up a pension fund by deductions from their salaries; they're not going to be to pleased at being fleeced of their pensions. So you persuade the firms owners to disencourage such talk amonst staff in favour of telling them this is the best deal on offer.

2. We are being charged an average of 5.8% interest even though those giving us this loan are only paying around 1.5% on it to international bankers. If is this is a bailout why are these extortion rates being charged? Indeed if it is regarded as an emergency why are we being charged interest at all or not just the 1.5%?

Because it is not a bailout; rather the fund and the interest rare are designed to lock Ireland into a Chinese finger-trap; the more we struggle against the trap the more immobile we become. That's the purpose of the three monthly reviews; there will be more punitive measures bolted-on as we go along.

3. In May 2010 Ireland agreed to pay €1.5 billion into the European Financial Stability Facility fund which was in response to the Greek crisis. Why can't we get our €1.5 billion back from the EU now since we need it ourselves?
Because Spain and Portugal need bailing too and we will also contribute to the EFSF for these too.
 

loner

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perhaps it should be called the Sellout rather than the Bailout
 

hammer

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Tax the private sector more to meet annual interest payments of €8.5 billion and maintain the salaries of public servants & social welfare payments to OAPs.

Doesn`t make much sense ?

This is recovery ?
 

collina

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Tax the private sector more to meet annual interest payments of €8.5 billion and maintain the salaries of public servants & social welfare payments to OAPs.

Doesn`t make much sense ?

This is recovery ?
Your answer doesn't make sense and has nothing to do with the OP

Both the Private and the Public Sectors suffer tax-increases equally. The Public Sector is so far the only Sector that has taken mandatory cuts; averaging 15%, though large elements of the Private Sector have taken cuts as needed and wanted by Private Sector employers.

If you think Public Services pay and pensions have not and will not taken a substantial hit, you've not being paying attention. Already we know from the four-year plan that the Pension Levy will no longer be deductible for tax purposes, so to say "PS pay is being maintained" is crass. There will be further (necessary in my view) pay-cuts for PS workers across the board as well has whatever tax increases we all have to suffer.

To suggest that the "tax the private sector more to meet annual interest payments of €8.5 billion and maintain the salaries of public servants & social welfare payments to OAPs" is being juvenile and narcissistic.
 


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