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Bailout Repayments

  • 25-12-2011 4:41am
    #1
    eire4
    Registered Users, Registered Users 2 Posts: 6,820 ✭✭✭


    I know this is not something that is likely to happen any time soon. But if the Irish banks that got bailed out get back on their feet and find themselves operating again at a profit will they start paying the government back?


Comments

  • #2
    later12
    Closed Accounts Posts: 11,299 ✭✭✭✭later12


    No. There is no plan to 'pay back' the money. The state will undoubtedly try to recoup some of its costs by selling its share in AIB, for example.

    But one must understand that the re-capitalisation of the Irish banks was not a loan. It was the price we had to cough up to stabilise the banking system.

    The benefit we receive in return is relative financial stability.


  • #3
    eire4
    Registered Users, Registered Users 2 Posts: 6,820 ✭✭✭eire4


    Thanks for the reply. I wasn't quite clear on that point. As you say then the only way that we get any money back is by someday being able to sell the shares in the banks that the government now owns.


  • #4
    hmmm
    Registered Users, Registered Users 2 Posts: 11,205 ✭✭✭✭hmmm


    eire4 wrote: »
    As you say then the only way that we get any money back is by someday being able to sell the shares in the banks that the government now owns.
    It will be very easy for a future government to levy the banks once they return to profitability.


  • #5
    coolshannagh28
    Registered Users, Registered Users 2 Posts: 1,488 ✭✭✭coolshannagh28


    Why worry about the banks paying back the money ,the people were sold a pup on this one the recapitalisation was supposed to get the banks lending again .Instead they are hoarding capital just as they done in Japan in their lost decades.
    This is a failed strategy ,anyway now its the ECB thats on the hook for it ,let them swing .The only reason we tolerate banks is because they are percieved as essential to the smooth running of the capitalist system through among other things credit supply .
    In Ireland they no longer provide this function so are a drag on our recovery ,they should be broken up nationalised and made help us rather than act as enemys of the state


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