6.7 % rate for the bailout.

Sir Oxman

Reported on the state broadcaster, second item.

This is when Ireland must say no.

Paul Somerville and Lucey were bang on the button with this figure on VB two nights ago.

This is unbelievable, why would these people demand such a punitive rate?
What is behind this?

Debt interest repayments would be approx 8.4bn per year by 2014 not including money drawn down for bank capitalisation...over 9 years

ArtSmart

according to RTE.

This is the end of FF. for good.

8.5 Billion payback a year on interest.

I cannot believe it.

Unless the senior bond-holders are gonna take a severe hit.

kaiser sauze

I'm stunned, absolutely stunned.

EDIT - I have not mentioned treason in my posts before now, but this is treasonous.

Paleface

They can f*ck off. We should default!

Laois_Man

How can we stop them from doing this? We have to stop them! I'm absolutely ****ing furious here. Livid!

silverharp

only losers that go to Ocean Finance pay that rate, oh wait..................

It makes burning the bondholders the simple solution, at that rate no borrowing makes sense.

wylo

ok....now we can panic

Bob_Latchford

Missed it was it on the news? speculation or real announcement?

muletide

Crazy, I can't see the logic in applying that rate. There is no way we can repay that.

I am shocked - that's it we are finished

ArtSmart

Paleface wrote: »

They can f*ck off. We should default!

I just cant believe this. Is it FF bluff bullshiit? Unbelievable.

I'd nearly consider default myself.

Bob_Latchford

Laois_Man wrote: »

How can we stop them from doing this? We have to stop them! I'm absolutely ****ing furious here. Livid!

Im off into Dublin at lunchtime, nice and peaceful

sollar

ArtSmart wrote: »

8.5 Billion payback a year on interest. .

And thats only on the 85 billion, what about when the other loans are accounted for.... it'll be 16 billion interest. We will be slaves for a generation.

Something radical needs to be done now.


Also, RTE could be in cohouts with FF and are playing politics with it. First Leak a massive 6.7%....... spook the public and then we will be relieved when the actual is about 5.8 or 6%

kaiser sauze

Bob_Latchford wrote: »

Missed it was it on the news? speculation or real announcement?

Speculation, but an explicit figure speculated.

ArtSmart

silverharp wrote: »

only losers that go to Ocean Finance pay that rate, oh wait..................

It makes burning the bondholders the simple solution, at that rate no borrowing makes sense.

Yeah - that's the only thing that would make sense.

otherwise we're in FUBAR territory.

later12

This haircut is going to have to turn into a decapitation.

6.7% on 85 bn cannot be done at current debt levels, nor anything approaching them.

scargill

with all of the FF bull**** over the last while I wouldn't be at all surprised if they have already provisionally agreed a figure nearer 5% and have just put out this 6.7% figure so when the figure is officially announced tomorrow night they can take the credit?

Am I too cynical now?

take everything

Bob_Latchford wrote: »

Missed it was it on the news? speculation or real announcement?

9 o clock news.

Idbatterim

6.7% its a disgrace! Vradakar said he would burn bond holders! I really hope this becomes a major election issue! It is total madness millions of us are going to be affected for what is pocket change in the scheme of things to bondholders. So what if a few percent of their investments have to be totally or partially written off?! Ireland really is in a position to totally unleash hell on the euro project. I think a referendum would have to be held though, so that the people would speak and that we would then accept whatever the consequences were.

greendom

That is shocking - are we really that much more of a risk than Greece who got their bailout at 5.2% ?

Tefral

We cant afford that...

****ing hell did i get it right that Klaus Regling is causing it to be so high?

ArtSmart

kaiser sauze wrote: »

Speculation, but an explicit figure speculated.

6.4 - 6.7, with 6.7 mentioned 'more often'.
Even i have to admit it may be real.

unfoockingbelievable. the bond holder story better come out soon.

i swear this will bury FF forever if it's true and the BH give no major relief.

DiscoStu

That's pretty much it then. Anything over the projected growth rates for the coming years was going to be a death sentance anyway, this just cements it. €15billion a year for servicing this debt, half our current tax revenue which is only going to drop as the economy is strangled thanks to the internal devaluation policies of the 4 year plan.

The only option is default on the bank debt and prepare for financial Armageddon.

carrolls

Time to threaten default. What have we got to lose? We may as well borrow off moneylenders.:D

indiewindy

Don't believe any of this until you see an official statement, as an earlier poster said, thay'll claim a victory by getting a c 5% rate, typical to make things look a lot worse than they will be

Laois_Man

We absolutely have to default. No question. How can people tell us we need this money to this degree? Sure we'll be screwed. But we're screwed anyway and we'll be screwed for alot less time if we bring down Spain, Portugal and possibly the Euro with us!

ArtSmart

scargill wrote: »

with all of the FF bull**** over the last while I wouldn't be at all surprised if they have already provisionally agreed a figure nearer 5% and have just put out this 6.7% figure so when the figure is officially announced tomorrow night they can take the credit?

Am I too cynical now?

That was my second thought. (the first was pretty dark, llet me tell you)

I hope they are that cynical , if you know what i mean.

greendom

What's the justification for this? I thought Ireland was in a relatively strong bargaining position as the EU wanted us to take the money. Why are we going to have to pay 1.5% more than Greece is for theirs?

donkey balls

Just watched it on tv my self and according to Leo Varadaker the greeks are paying less than us:mad: someone please tell me that these f**king morans did'nt sign off on this.
Did anyone hear the interveiw yesterday evening with matt cooper and ollies spokesman saying that the interest rate would not be over 5%.

Joey the lips

http://www.rte.ie/news/2010/1126/economy_bailout.html

likely....has that been confirmed...

bleg

scargill wrote: »

with all of the FF bull**** over the last while I wouldn't be at all surprised if they have already provisionally agreed a figure nearer 5% and have just put out this 6.7% figure so when the figure is officially announced tomorrow night they can take the credit?

Am I too cynical now?

No, you're not too cynical. Definitely possible.

oppenheimer1

**** the EU, we should take the IMF rate of 4.5%. At 6.7% that isn't a bailout, we'd be better off taking our chances in the market.

It will be an utter failure of government if that is the final rate and we'll have been sold into servitude. This is simply too expensive and is a self defeating measure.

Bob_Latchford

Sweden are offering 3%, Germany can raise funds at 2.5% greek bailout 5%
6.7 is different ballpark.

No wonder they want Portugal to take a bailout to, at those rates its a nice little earner

bizmark

Eu's one big happy supportive family eh :rolleyes:

jmayo

Idbatterim wrote: »

6.7% its a disgrace! Vradakar said he would burn bond holders! I really hope this becomes a major election issue! It is total madness millions of us are going to be affected for what is pocket change in the scheme of things to bondholders. So what if a few percent of their investments have to be totally or partially written off?! Ireland really is in a position to totally unleash hell on the euro project. I think a referendum would have to be held though, so that the people would speak and that we would then accept whatever the consequences were.

FG have been saying that all week, whereas ff have been saying ?????

This is GAME OVER if it goes ahead.:mad::mad::mad:

We are being governed by Traitors.

hotmail.com

What is Sean Whelan's source for this? VB's panel discussions don't seem so wrong anymore, like some on boards were suggesting.

anoble66

I just cannot get over how stupid this government is. We will have no option but to default at that rate. Even at 6% it is way too high.

carrolls

I think default is the only option. Bring down Europe with us. **** them. 6.7% is too much of a price to pay. If we play hardball, we will get 4.5%.

donkey balls

By jaysus if these FF b,stads go through with this i think i might take up the job offer in Canada i can get including residency.:mad:

ArtSmart

hotmail.com wrote: »

What is Sean Whelan's source for this? VB's panel discussions don't seem so wrong anymore, like some on boards were suggesting.

yeah - i was one of them

it seems the lunatics have taken over the asylum

Absurdum

"could be as high as 6.7% compared to 5% for Greece" was the "and the main news again" bit, even though it was behind by-election result on the news, something seems amiss here, this can't be right

Idbatterim

even if the rate is 5%, the amount of debt is just far too high. The interest rates are nearly a side show. If you look at elections issue, you would think turning the economy around, job creation would be agenda number 1. I reckon they are now second in importance to the DEBT - destruction of this country for decades if we just keep our heads down and roll over.

greendom

hotmail.com wrote: »

What is Sean Whelan's source for this? VB's panel discussions don't seem so wrong anymore, like some on boards were suggesting.

Don't know but he was very specific; he was able to give the rates of each of the 3 lenders iwth IMF providing the lowest interest rate.

Bob_Latchford

They are called lender of last resort, but does that mean thats it?

amen

unless FF are playing a long game. Take the 6.7% loose the next election and let Labour/Fg default and then blame then and FF get reelected next time around.

greendom

donkey balls wrote: »

By jaysus if these FF b,stads go through with this i think i might take up the job offer in Canada i can get including residency.:mad:

Think you'd be mad not to :mad:

Laois_Man

donkey wrote:

Did anyone hear the interveiw yesterday evening with matt cooper and ollies spokesman saying that the interest rate would not be over 5%.

Didn't hear it but I'd imagine he was only talking about the IMF portion of the loan and remember we're only getting about one-third of the money from them!

ArtSmart

amen wrote: »

unless FF are playing a long game. Take the 6.7% loose the next election and let Labour/Fg default and then blame then and FF get reelected next time around.

i know they're cynical but for fooks sake...

and RTE give us the Toy Show.

paul71

carrolls wrote: »

I think default is the only option. Bring down Europe with us. F**k them. 6.7% is too much of a price to pay. If we play hardball, we will get 4.5%.

I agree we should simply tell the EU that excepting this deal is not possible and we are allowing the banks to fail thus taking the German, French and UK bondholders with them. If the EU want to prevent this then they should recapitalise the Irish Banks themselves.

tonycascarino

Yes for jobs, yes for the economy

Absurdum

greendom wrote: »

Don't know but he was very specific; he was able to give the rates of each of the 3 lenders iwth IMF providing the lowest interest rate.

he seemed to be suggesting that we take the IMF bit at the low rate then see what happens

i.e. burn the bondholders

the IMF money will be used to day-to-day stuff and recapitalisation?

Scofflaw

carrolls wrote: »

Time to threaten default. What have we got to lose? We may as well borrow off moneylenders.:D

Except that last time we looked, the most respectable moneylenders were charging north of 8%.

That's a higher figure than might have been expected, but one thing it does is make us reluctant to actually use the facility, and keen to get back into the bond markets, because the minute the bond rates drop below 6.7% it makes no sense to draw against the facility any more.

Won't make sense if we're paying interest on the mere existence of the facility, though, and pretty bad if we have to draw down most or all of the facility.

cordially,
Scofflaw