FG+Labour are looking at bringing in 3rd party to restructure debt

ei.sdraob

Both Fine Gael and Labour are believed to be looking at bringing in a third party to help restructure the country’s debt burden. According to a source very close to the situation, both parties are believed to be looking at the role Felix Rohatyn played in helping the city of New York restructure its debts when it faced bankruptcy in the 1970s.

The restructuring would involve forcing haircuts on bondholders and introducing a debt liability management exercise whereby the terms of existing bonds are rolled out to much longer periods. Contact has been made with Rohatyn and a delegation is expected to fly out to New York over the next few weeks to see how the restructuring process that happened in New York can be applied to Ireland, says the source.

The stock of Ireland’s debt-to-GDP could reach 120% or more depending on the final tally for losses across the banking sector. The Government has held the line that restructuring is not an option and that the economy can grow its way out of its mounting debt obligation. Comparisons are made with the 1980s when debt-to-GDP reached 135%.

Looks like the 2 parties who will be in charge one way or another are already setting up the groundwork to help address the debt elephant in the room, well done!

flutered

i am in agreement with this idea, at least they seem to be open to outside advice, perhaps it is this crowd that should have been brought in by the eu dunce prior to the bank bailout.