Were we spun by FF on the 6.7% rate?

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The stories during the week, first in RTE, then elsewhere, that we would be charged 6.7% interest for the bailout that isn't a bailout were suspicious. Today we learn that an immediate drawdown would cost a rate of 5.8%. This is being presented already as some kind of relief, maybe even a victory - as if Ireland's 'negotiators' have done a great job, and as if the EU are being generous.

5.8% is horrendous! We can't afford it! Were we spun the 6.7% rate to make this awful rate palatable and to make them look like they had done anything other than completely fail?
 


Watch The Break

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Did you come up with this yourself, or did you read it one of the other 5000 times it was posted over the last five days?
 

TonyB

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No, of course not. 5.8% is an average rate, and therefore there are higher rates attaching to some of the money, possibly as high as 6.7%.

Two questions - are they including the pension reserve money in their average calculation (presumably the state 'loaning to itself' at 0%, which would bring the average down); and is there any collaral involved?
 
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Did you come up with this yourself, or did you read it one of the other 5000 times it was posted over the last five days?
And I was one of those who posted on it. I waited until the actual rate was published to start a thread, otherwise I'd have put up a thread the first time it was mentioned. And it deserves a thread. We are almost certainly being spun and it should be publicised.
 

NewRepublic

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I reckon the 6.7% could be correct, but it just accounts for the rate the EU are loaning to us at. The IMF loan and the bilateral loans are at a lower interest rate. It good to know who our "friends" are.
 

Congalltee

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5.8% average to 'Vary with Market conditions and timing'. Based on current Market conditions.
12.5bn from pension fund.
5bn from our cash.
Theft of pension money to zombie Banks.
The interest rate will be higher than as stated.
 

justme1

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The stories during the week, first in RTE, then elsewhere, that we would be charged 6.7% interest for the bailout that isn't a bailout were suspicious. Today we learn that an immediate drawdown would cost a rate of 5.8%. This is being presented already as some kind of relief, maybe even a victory - as if Ireland's 'negotiators' have done a great job, and as if the EU are being generous.

5.8% is horrendous! We can't afford it! Were we spun the 6.7% rate to make this awful rate palatable and to make them look like they had done anything other than completely fail?
+1
 

renewal

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Yes is the 5.8% interest on the 85 billion? This 85 billion consists of something like 17 billion of our our money. So is it really a 7% interest rate we're paying since we are borrowing something like 67 billion?
-M
 

Dogitude

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At a quick cacluation-
The average interest rate on the 85bn is 5.8%.
If we are lending ourselves 17.5bn of our own money at 0%, then the imputed interest rate on the remaining loan is 7.3%.
Royally screwed, and spun to look like a lower rate. And we are so stupid we will probably fall for it.
 

jpc

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Would you expect any different from this shower of jaded cynics.?
It doesn't specify if the 5.8% is for the non Irish component either
And the bondholders get away scot free.
Don't you love capitalism
 

flavirostris

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What was the source for the 6.7% rate ... FF TV.

case closed
 

delaad

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The stories during the week, first in RTE, then elsewhere, that we would be charged 6.7% interest for the bailout that isn't a bailout were suspicious. Today we learn that an immediate drawdown would cost a rate of 5.8%. This is being presented already as some kind of relief, maybe even a victory - as if Ireland's 'negotiators' have done a great job, and as if the EU are being generous.

5.8% is horrendous! We can't afford it! Were we spun the 6.7% rate to make this awful rate palatable and to make them look like they had done anything other than completely fail?
How shrewd!
 

Panopticon

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The stories during the week, first in RTE, then elsewhere, that we would be charged 6.7% interest for the bailout that isn't a bailout were suspicious. Today we learn that an immediate drawdown would cost a rate of 5.8%. This is being presented already as some kind of relief, maybe even a victory - as if Ireland's 'negotiators' have done a great job, and as if the EU are being generous.

5.8% is horrendous! We can't afford it! Were we spun the 6.7% rate to make this awful rate palatable and to make them look like they had done anything other than completely fail?
This is exactly what I thought when the true rate was announced.
 

hammer

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Someone needs to ask the following quickly

1. Is there an acceptance fee
2. Is there an administration fee
 


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