Brendan Burgess
Founder
- Messages
- 52,264
How much is the total fund?
EU-IMF|€67.5
NPRF|€10
Cash balances|€7.5
Total|€85 How will it be spent?
Deficits 2011/12/13/14|€40
payments for Promissory Notes|€10
Recapitalise AIB and BoI|€10
Contingency fund|€25
Total|€85
How will this affect our national debt?
Our national debt will rise by the amount we borrow plus the interest on it.
Presumably the €10 billion for AIB and BoI will come from the NPRF, so it's not borrowing as such.
The €40 billion for our exchequer deficit has nothing to do with banking. We would have to borrow that anyway. If we didn't borrow it from the EU-IMF, we would try to borrow it on the bond markets.
Have we any other money to spend?
We had €20 billion cash at the end of 2010, of which we are only allocating €7.5 billion to the above. Not sure what happens with the balance of €12.5 billion
If all the forecasts above work out right, then we should still have cash in the bank of €12.5 billion at the end of the period.
When will we have to draw it down?
We don't have to draw it down until we need it. We have €20 billion in cash at the moment, so in theory, we could spend this first and the €10 billion from the NPRF.
Cash needed for 2011
Expected deficit|€15
Additional capital for AIB and BoI|€10
Payments for Anglo & Nationwide Promissory Notes|€3
Total|€28 What is the contingency fund for?
Contingencies. It’s the IMF-EU trying to convey the message that if there is a need for further funding, it’s there. It does not have to be drawn down if it’s not needed.
What is the rate of interest?
On average: 5.8%
How much will that cost us per year?
It depends on when we draw down the money and how much we draw down.
If we down €20 billion in 2011, then it would cost us around € €1.2 billion in interest in 2012.
Why is the interest rate so high?
The rate on the IMF loan is the same for all their clients.
We are not being singled out for a specially high interest rate.
Are the Greeks paying a lot less than we are?
Breakdown of the EU-IMF contribution
€22½ billion from International Monetary Fund (IMF)
€22½ billion from European Financial Stability Mechanism
€17½ billion from the European Financial Stability Fundü
€5 billion in bilateral loans from non Euro zone member states [UK €3.8bn, Sweden €598m and Denmark €393m}
Exchequer Deficits from Annex 4 of The National Recovery Plan
Total|2011|2012|2013|2014
40|14.7|11.7|8.6|5 Source
Department of the Taoiseach announcement
NPRF|€10
Cash balances|€7.5
Total|€85
payments for Promissory Notes|€10
Recapitalise AIB and BoI|€10
Contingency fund|€25
Total|€85
How will this affect our national debt?
Our national debt will rise by the amount we borrow plus the interest on it.
Presumably the €10 billion for AIB and BoI will come from the NPRF, so it's not borrowing as such.
The €40 billion for our exchequer deficit has nothing to do with banking. We would have to borrow that anyway. If we didn't borrow it from the EU-IMF, we would try to borrow it on the bond markets.
Have we any other money to spend?
We had €20 billion cash at the end of 2010, of which we are only allocating €7.5 billion to the above. Not sure what happens with the balance of €12.5 billion
If all the forecasts above work out right, then we should still have cash in the bank of €12.5 billion at the end of the period.
When will we have to draw it down?
We don't have to draw it down until we need it. We have €20 billion in cash at the moment, so in theory, we could spend this first and the €10 billion from the NPRF.
Cash needed for 2011
Additional capital for AIB and BoI|€10
Payments for Anglo & Nationwide Promissory Notes|€3
Total|€28
Contingencies. It’s the IMF-EU trying to convey the message that if there is a need for further funding, it’s there. It does not have to be drawn down if it’s not needed.
What is the rate of interest?
On average: 5.8%
How much will that cost us per year?
It depends on when we draw down the money and how much we draw down.
If we down €20 billion in 2011, then it would cost us around € €1.2 billion in interest in 2012.
Why is the interest rate so high?
The rate on the IMF loan is the same for all their clients.
We are not being singled out for a specially high interest rate.
Are the Greeks paying a lot less than we are?
Breakdown of the EU-IMF contribution
€22½ billion from International Monetary Fund (IMF)
€22½ billion from European Financial Stability Mechanism
€17½ billion from the European Financial Stability Fundü
€5 billion in bilateral loans from non Euro zone member states [UK €3.8bn, Sweden €598m and Denmark €393m}
Exchequer Deficits from Annex 4 of The National Recovery Plan
40|14.7|11.7|8.6|5
Department of the Taoiseach announcement