Times reports rate "higher than 5.2%, lower than 6.7%"

He3

Well-known member
Joined
Oct 1, 2008
Messages
17,077
The softening up process continues. After the high end story is planted, here comes the second phase.

The interest rate for a nine-year EU/IMF loan would be lower than the 6.7 per cent being quoted in some reports today, a source involved in the talks has indicated.

The source said the interest rate was still under negotiation but would not be that high.

[...]

The source accepted that the average interest rate was likely to be higher than the 5.2 per cent charged to Greece when it was bailed out earlier this year. But it was pointed out that the Greek loan was for a period of only three years.

Higher rates of interest are attached to longer loans and the nine-year loan being negotiated on behalf of the State will involve a higher interest rate, as the risk of default is considered to be higher.


Reports that bailout will attract 6.7% rate rejected - The Irish Times - Fri, Nov 26, 2010
 
Last edited:


EvotingMachine0197

Well-known member
Joined
Feb 17, 2006
Messages
8,552
WTF ? What's with all the stupid games. Why can't someone who knows the rate just come out and tell us ffs.

If they don't know the rate themselves yet then they should just pss off until they do.
 

He3

Well-known member
Joined
Oct 1, 2008
Messages
17,077
Economic conscripts

WTF ? What's with all the stupid games. Why can't someone who knows the rate just come out and tell us ffs.

If they don't know the rate themselves yet then they should just pss off until they do.

We don't count in this game. We just pay.
 

Radix

Well-known member
Joined
Aug 31, 2010
Messages
9,892
Great. The *Irish Times*. Didn't they have a very successful Thursday supplement during the boom years?
'Property Porn', I think it was called.

Just suited the greedy Irish down to the ground. Great old industry that, buying and selling our houses to each other, aided and abetted by the cheerleaders from the Irish Times.

They ran with the fox and now they are hunting with the hound.

Typical 'establishment' behaviour.

Don't buy that particular journal any more.
 

He3

Well-known member
Joined
Oct 1, 2008
Messages
17,077
People who seem to know their stuff say we cannot afford more than 3 per cent.

The floor is now set at >5.2 per cent.
 

Suetonius

Member
Joined
Feb 24, 2008
Messages
12
My guess is that the IMF tranche (25%) will cost 3.3%, say, 4.0% for the contribution (10%) from the Brits/Swedes and 6.7% from our so-called friends in Europe (65%). This would produce a blended rate of around 5.7%. Even this is too high and may lead to demands for a bigger haircut for the bondholders than is achievable. If so, they could find that the credit market shuts down on Monday. The implications of this for day-to-day bank funding would be dreadful.
The irony of all this is that Lenihan may have got away with burning the bondholders after the Lehman collapse whereas trying to enforce a haircut now will have a terrible effect. Besides, having blown €55bn of our money in repaying bondholders over the past 2 years, Lenihan is far too late in changing tack. While Lenihan may get his come uppance in the forthcoming election, the same is not true of his permanent advisers throughout all this, the Dept. of Finance. The incoming government needs to clear this lot out. They have been out of their depth for years and their incompetance has cost the State a fortune.
 

MPB

Well-known member
Joined
Nov 27, 2009
Messages
4,455
We should do ourselves and the world a favour and hasten the collapse of the worlds financial system.

The sooner it starts to really effect the U.S, the Chinese, the Germans and the British the better.

Because it is only when they are affected, that the real solution of massive debt forgiveness will be considered.
 

He3

Well-known member
Joined
Oct 1, 2008
Messages
17,077
a come on he3 do we need a third thread on this in 3 hours?
The national broadcaster has put out two entirely different stories on the rate this evening. Each is worth a thread in its own right.

The Irish Times has now come in with a third version, contradicting both RTÉ reports, and claiming authoritative sources.

People are entitled to see that unfolding news management exercise reflected accessibly here.
 

Trophonius

Well-known member
Joined
Nov 6, 2010
Messages
374
I really think that we should kick the ECB and EFSF out and just deal with IMF as we would be less screwed.
 

He3

Well-known member
Joined
Oct 1, 2008
Messages
17,077
I really think that we should kick the ECB and EFSF out and just deal with IMF as we would be less screwed.
Trust your negotiators.
 

He3

Well-known member
Joined
Oct 1, 2008
Messages
17,077
Managing public expectations

The floor is now 5.5% it seems, going by the latest on the Times site -

The average annual interest rate payable on the bailout is expected to be in the region of 5.5 per cent, but a higher rate will apply to any loans repayable over more than three years. However, the interest rate for any nine-year EU-IMF loan would be lower than the 6.7 per cent reported by RTÉ last night, according to a source involved in the talks. He said the rate for any such loan was still under negotiation but would not be as high as 6.7 per cent.

Efforts intensify to finalise bailout package by tomorrow - The Irish Times - Sat, Nov 27, 2010
 

He3

Well-known member
Joined
Oct 1, 2008
Messages
17,077
It is difficult to see why the EU is in the mix if they are offering higher rates than the IMF.

They supply most of the money?
 

patslatt

Well-known member
Joined
Apr 11, 2007
Messages
13,637
Questions

My guess is that the IMF tranche (25%) will cost 3.3%, say, 4.0% for the contribution (10%) from the Brits/Swedes and 6.7% from our so-called friends in Europe (65%). This would produce a blended rate of around 5.7%. Even this is too high and may lead to demands for a bigger haircut for the bondholders than is achievable. If so, they could find that the credit market shuts down on Monday. The implications of this for day-to-day bank funding would be dreadful.
The irony of all this is that Lenihan may have got away with burning the bondholders after the Lehman collapse whereas trying to enforce a haircut now will have a terrible effect. Besides, having blown €55bn of our money in repaying bondholders over the past 2 years, Lenihan is far too late in changing tack. While Lenihan may get his come uppance in the forthcoming election, the same is not true of his permanent advisers throughout all this, the Dept. of Finance. The incoming government needs to clear this lot out. They have been out of their depth for years and their incompetance has cost the State a fortune.
If Lenihan repaid €55 bn to bank bondholders,what is left of bonds that mature beyond the guarantee expiry date in June/11? If haircuts were taken on those bonds, improving the bank capital ratios,maybe banks could dispense with the government guarantee in issuing new bonds? Or would the continuing fears of losses on property loans require the guarantee still?
 


New Threads

Popular Threads

Most Replies

Top