The Big Bailout of the Eurozone (Another crisis coming? - Seriously)

[muppet]

http://namawinelake.wordpress.com/2013/02/06/nama-to-merge-with-ibrc-as-scramble-for-promissory-note-solution-intensifies/#comments

That is very complicated for me, but looks a bit like a stroke to get cheaper interest rates. If it does that and if it pisses off the ECB in the process then good. What am I missing?

[seafoid]

http://namawinelake.wordpress.com/2013/02/06/nama-to-merge-with-ibrc-as-scramble-for-promissory-note-solution-intensifies/#comments

That is very complicated for me, but looks a bit like a stroke to get cheaper interest rates. If it does that and if it pisses off the ECB in the process then good. What am I missing?

If it gets cheaper interest rates then it's an improvement.
But people will vote FF at the next GE. And they don't understand how
FF were responsible for what happened.

They had no clue when the wolf appeared at the door.
The Promissory notes and the 31bn are the price of FF ineptitude.

[seafoid]

FT

http://www.ft.com/cms/s/0/926f3354-7081-11e2-a2cf-00144feab49a.html

Ireland proposes deal to ease debt pile

By Jamie Smyth in Dublin and Lina Saigol in London

Ireland's chances of exiting its international bailout later this year have been given a boost after Dublin proposed a deal to reduce the cost of its bank debt in return for a speedier liquidation of Anglo Irish Bank, the failed lender.
Under the plan, the Irish government would wind up Anglo Irish Bank more quickly than planned in return for eurozone agreement to replace the costly €28bn promissory notes that were used to bail out the bank in 2009, according to people familiar with the plans.

The deal still requires the approval of the European Central Bank. But the Irish parliament was poised to rush through emergency legislation on Wednesday night and the government was set to appoint a liquidator within hours to expedite the windup of Anglo Irish.
Three people with knowledge of the proposal suggested that the former Anglo Irish assets would be shifted on to the balance sheet of the National Asset Management Agency. Dublin set up NAMA as a "bad bank" in 2009 to clear toxic property loans with a face value of €74bn from the balance sheets of its main banks.
Under the proposed deal, Dublin would issue sovereign bonds to replace the promissory notes that the defunct lender uses to tap central bank liquidity.
Crucially, these bonds would be on less onerous terms than the promissory notes that the Irish government is obliged to repay in €3.1bn annual instalments (principal and interest) for the next decade.
The promissory notes have become a lightning rod for public anger over austerity and Ireland's treatment at the hands of the eurozone authorities, particularly the ECB. The annual payments are more or less equivalent to the value of austerity measures implemented by Dublin each year.
A deal would be a big relief to Dublin, easing its return to markets and exit from its international bailout programme due later this year. The ECB has had concerns that the restructuring of Ireland's debt could lead other eurozone countries to seek similar ways of reducing their debt burdens. However, Ireland was the only euro member with the burdensome promissory notes.
The plans is expected to be announced, after Patrick Honohan, the Irish central bank governor, proposed a solution at Wednesday's meeting of the ECB in Frankfurt.
It comes after a two-year lobbying campaign by Dublin to be allowed to restructure the promissory notes that were agreed with the ECB at the height of the financial crisis. The ECB has rejected previous Irish proposals saying they were akin to monetary financing of governments, prohibited under EU treaties.
Anglo Irish Bank is now called Irish Bank Resolution Corporation. In January the FT reported that IBRC was accelerating the sale of tens of billions of euros of property-backed loans. The lender was due to be liquidated by 2020.
Anglo Irish was the bank at the centre of Ireland's financial crisis after lending tens of billions of euros to property developers during the building boom that followed Ireland's adoption of the euro in 1999.
The lender's collapse has saddled Irish taxpayers with net losses of between €26bn-30bn.

[muppet]

One wonders what happens if the ECB says no.

[seafoid]

Fail again. Fail better ?

But they probably want to get Ireland out of the bailout and stretching the loan out is better than scrubbing it from their PoV and the last Draghi thing has them lending money at rock bottom rates to everyone so it is not
a particularly audacious plan. I would say.

[GalwayBayBoy]

The usual clusterfuck in the Dail then. I'd say 90%+ of the TD's there have no idea on what they are actually voting on and how could they given how they are trying to rush it through before the markets open in the morning. The ECB must be pissing themselves.

[seafoid]

http://blogs.ft.com/money-supply/liveblogs/2013-02-07/

And now questions. First, has the ECB reached a deal on the Anglo-Irish affair.
On Ireland, there wasn't a decision to take. The ECB council took note of the Irish operation. Draghi refers everyone to Dublin.

It is Byzantine

[Hardy]

It's also the death-knell for the policy of separating bank debt from sovereign, duly and officially decided by the council of ministers last June, reneged upon by the financially powerful nations and meekly abandoned by our government.

And, in another "Aberdeen Man Drowned As Liner Hits Iceberg" episode, the SF groupies here seem to think the most significant event of the last 24 hours was that Pierce Doherty was shouted at in the Dáil.

[seafoid]

It's also the death-knell for the policy of separating bank debt from sovereign, duly and officially decided by the council of ministers last June, reneged upon by the financially powerful nations and meekly abandoned by our government.

And, in another "Aberdeen Man Drowned As Liner Hits Iceberg" episode, the SF groupies here seem to think the most significant event of the last 24 hours was that Pierce Doherty was shouted at in the Dáil.

the name of the game is power
and Ireland doesn't have any

[Hardy]

It's also the death-knell for the policy of separating bank debt from sovereign, duly and officially decided by the council of ministers last June, reneged upon by the financially powerful nations and meekly abandoned by our government.

And, in another "Aberdeen Man Drowned As Liner Hits Iceberg" episode, the SF groupies here seem to think the most significant event of the last 24 hours was that Pierce Doherty was shouted at in the Dáil.

the name of the game is power
and Ireland doesn't have any

Iceland doesn't have much either. But it has cojones.

[seafoid]

It's also the death-knell for the policy of separating bank debt from sovereign, duly and officially decided by the council of ministers last June, reneged upon by the financially powerful nations and meekly abandoned by our government.

And, in another "Aberdeen Man Drowned As Liner Hits Iceberg" episode, the SF groupies here seem to think the most significant event of the last 24 hours was that Pierce Doherty was shouted at in the Dáil.

the name of the game is power
and Ireland doesn't have any

Iceland doesn't have much either. But it has cojones.

http://www.ft.com/cms/s/0/3ed71cc8-712d-11e2-9d5c-00144feab49a.html


Dublin has won reluctant agreement from the European Central Bank to restructure a chunk of its bank debts in a move the government believes should ease its exit from its international bailout later this year.

The deal will not write off any of the €64bn debts racked up by Dublin when it bailed out its banks during its financial crisis. Instead, it will stretch out repayments on almost half Ireland's bank related debts over a longer timeframe, easing the country's short-term financing requirements.

Fair play to FG 

r

[Declan]

The deficit this year is 15bn. It is a tough ask expecting the Govt to go all John Wayne when it has to borrow that sort of money from the ECB to pay the bills.

We are now 5 years into a deep recession and we have decided to remortgage a debt that wasn't ours to keep our european betters happy - We cannot pay back the money we cannot continue to operate with such a deficit so we should be adult about it and have a negotiated settlement  - We have a fear that the world will collapse if we do that -We have no imagination or as Hardy put it cojones in our political establishment who, with their well paid and guaranteed jobs and pensions, have no idea what the normal person in this country is enduring - We are a busted flush and we will continue to be so as long as we maintain this attitude.

As someone who was a huge supporter of the European project in dragging us into the 21st Century it angers me to see how our "partners" are riding us. I'd love to have a poker session with Baldy, Enda and the rest of the gobshites who inhabit our DOF.

Only copperfastens my plans for the next 10/20 years to do everything I can to get the f**k outta this place

[Declan]

Is it safe to say that this debt will never be paid off then, ever? That in 40 years time we'll just be releasing new bonds to cover the old ones when they mature and hope that market rates are favorable?

That's one line of argument  - that sovereign debt is never paid off just serviced or stuck on the never never and we continue as before. So this "deal" will allow us to get back into the very financial markets(hat are part of the problem.), to borrow money to keep the country running at a serviceable deficit.

Bizarre but true

[Denn Forever]

Just imagine how you'll feel if your child announces they want to do Business at College!  And they'll need a loan.

[camanchero]

a disgrace
the debt was not reduced, merely an agreement to pay it all off over a longer period.

I hope they start up a bolshevik party , I'll vote for them - esp if they say they are going to tell the bondholders to feck off (well only paying 50%-75% would be better than what we have now).
fg are incapable and inept. labour are their willing useless lapdogs.

we have too many people in cushy positions who only care about me fein. thats the problem with our gov and people who we vote for.
There are only a handful that are worth the vote.