IHT: Ireland 'blank check' to banks raises questions (October 1, 2008)
That Irish blank check amounts, in a doomsday scenario, to a maximum estimated liability of €400 billion (US$560 billion) -- just to repay the debts and deposits of six banks. That's double the country's annual gross domestic product, nine time the national debt and €95,000 ($135,000) per citizen. But Ireland's government leaders themselves have stressed that they made the unprecedented promise only because they calculated, by doing it, shares would rebound, foreign capital would flow in, and they would never have to spend a cent of taxpayer's money bailing out a bank. Prime Minister Brian Cowen said he had "not handed over any money to any bank. I have provided the reputation of this state to the banks."
But Ireland's government leaders themselves have stressed that they made the unprecedented promise only because they calculated, by doing it, shares would rebound, foreign capital would flow in, and they would never have to spend a cent of taxpayer's money bailing out a bank.
Prime Minister Brian Cowen said he had "not handed over any money to any bank. I have provided the reputation of this state to the banks."
