Prepare to welcome your new IMF overlords

It’s been obvious for some time that the state won’t be able to pay off all this debt.

Does anybody disagree? :lol:

Anybody want to take bets on the date of the bailout? I’ll say October 2011.

Government perilously close to calling in IMF, report warns
Report warns Lenihan may have to call in outside help

By Fionnan Sheahan and Emmet Oliver

Friday September 17 2010

TAOISEACH Brian Cowen last night insisted he would fight on – but his economic woes deepened as a major new report warned the country was perilously close to calling in outside help from the EU or the IMF.

After a disastrous three days, Mr Cowen offered little comfort to disgruntled Fianna Fail backbenchers as he failed to outline what changes he would make to his leadership, communications and lifestyle as a result of his ‘Morning Ireland’ interview debacle.

But the persistent grumbling over his leadership was overshadowed last night by two new economic blows.

The cost of borrowing for the country moved higher again on international bond markets, after falling back following last week’s government decision to split Anglo Irish Bank.

And a report from Barclays, one of Europe’s largest banks, said Ireland may yet need financial help from the IMF or the EU if conditions got any worse.

But a spokesman for Finance Minister Brian Lenihan said last night: "The Government’s strategy for dealing with the economic and financial challenges has been commended by the EU Commission, the European Central Bank and many other international experts.

“This strategy is at an advanced stage and is being implemented in an extremely open and transparent manner.”

Barclays said: “In the coming months the Government may need to seek outside help.”

While Ireland has raised most of the money it needs for this year, the cost of Anglo and the scale of the deficit meant any further financial shocks could push the country over the edge, the bank warned.

It said that there was little room for “further unexpected financial sector losses” and that Ireland was running out of economic room.

The highly influential bank also advised Ireland to do a “deal” with Anglo bondholders.

This could entail asking them to reduce the amount that they are owed in return for a partial stake in the bank.

Barclays said Ireland might apply for assistance from the IMF at some point in future if bank losses grow much bigger.

It said going to the IMF before that could “cause alarm” on the markets.

Ireland is expected to post a deficit of 25pc of GDP this year, when bank losses are added – the largest in Europe.

Meanwhile, Ireland’s borrowing costs continued to edge over 6pc last night as concern lingered over the financial position of the country. A plan from last week to split Anglo into two banks has failed to allay the concerns of traders.

Two ratings agencies have raised questions over how much support the State is likely to give Anglo Irish Bank if it goes into a wind-down arrangement.

Greece is the only eurozone country facing interest rates as high as Ireland. Portugal, while also under pressure, is still able to borrow more cheaply than Ireland.

The current high borrowing costs may drop if the Government can estimate the final likely cost of Anglo.

The level of uncertainty about Irish bank losses continues to be a major negative for Irish bonds.

Mr Cowen said the rising cost of borrowing was a reaction to the demand in the bond market.

“In relation to the bond spreads, they spread for all countries, as I understand it today,” he said.

Mr Cowen was in Brussels at an EU summit with the Foreign Affairs Minister Micheal Martin.

The pair put on a united front in the wake of the key role that the minister played in forcing Mr Cowen to apologise for his disastrous interview.

The silence from the Fianna Fail backbenchers was an ominous sign for Mr Cowen as the saga continued to play badly among the public.

But Mr Cowen said firmly that he believed he had the support of the Fianna Fail TDs and senators to continue in the job.

"Yes, we don’t expect a general election any day soon.

“We’re in the process of working with a Government… on policies that are necessary for the recovery of the country. And our mandate is there until 2012,” the Taoiseach said.

The Labour Party blamed Mr Cowen’s infamous radio interview for the latest hike in Ireland’s cost of borrowing.

  • Fionnan Sheahan and Emmet Oliver

Irish Independent

A fire sale of the state’s assets in store. The Four Courts would make a lovely new headquarters for Tesco.

IMFlano

I don’t know how all you people that keep talking down the economy don’t go and commit suicide.

To be honest, Lenihan is slightly more trustworthy than Barcleys, but only just. But he is in government and part of the FF party.

I think we are in a similar enough position to Spain, except they have tourism which might just hold them together.

All you can do is work away, work hard, try to hold onto the job, do anything you need to do even if you may not be in choosen profession and if all that fails move to Oz or NZ. Its that simple as far as i’m concerned.

Irish bond yields are now at 6.13%, a record high. Greek bond yields reacherd 6% in January and were at 10% by April. Morgan Kelly says that Ireland’s debt to GDP ratio will be 115%, that’s debt to GNP 140% by 2012, if we are lucky. That’s worse than Greece. Welcome, overlords.

Ah but we’re great craic

The soldiers of destiny are well aware of all of this but they have to plough on as they have pensions [mulitiple] and expenses to think of. The longer they put off the inevitable the more feathering their nest can receive.

But shur he [insert name] went to me grans funeral and is a sound man…etc etc :angry:

It’s difficult to tell from this vantage point whether they will consume the captive Irish men or merely enslave them. One thing is for certain, there is no stopping them; they will soon be here. And I, for one, welcome our new overlords. I’d like to remind them that as a trusted TFK personality, I can be helpful in rounding up others to toil in their underground sugar caves.

Irish bond yields have now gone down to 6.12%. We have well and truly turned the corner :clap:

Phew, that was a rough 20 minutes.

Congrats on passing 7000 Sidford.
I just noticed I passed 4000.

Can you have a direct affect on this?

if no, don’t worry about it.

The thing being neglected here is that if we never sold another bond we’re fully funded till half way through next year. Token bond auction next week will tell a lot.

Wasn’t the debt/GNP ratio worse in the 80’s?

Probably, but the drop down from where we were is higher, so i presume the losses are bigger.

Sure was the recession not over back in June or July there? We talked our way into this recession and we’ll talk our way out of it.

Brian Cowen says there no session like a recession.

https://www.youtube.com/watch?v=axXvxpzMe_0

6.30% now, it was 6.31 but this lower figure should mean things are a bit more manageable now.

The corner has been turned