Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
JakeS:
And it will be... if they keep rolling it over until the bad bank debt has been resolved. The alternative is to simply default on all Irish sovereign debt and set up a shadow central bank to fund the deficit. That would be far worse for these creditors.

So how is this different from the ECB/IMF bail-out fund - which enables Ireland to access capital at cheaper rates until such time as it can fund its own borrowing on sovereign debt markets again?

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun Nov 21st, 2010 at 03:22:44 PM EST
[ Parent ]
Fewer sticky strings.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Nov 21st, 2010 at 03:44:41 PM EST
[ Parent ]
We don't yet know what the strings will be. So far the Irish Government has been making all the running in tying itself up in knots all by itself with no need for help from anyone else - as in the 15 Billion cuts in public expenditure programme it is about to announce and which pre-dates ECB/IMF involvement (if not consultation).  

The IMF may turn out to be a convenient bogeyman to frighten the public sector unions, but the sense I have is that the Irish Govt. has been leading the charge to rein in public expenditure, and particularly public administration costs as well as the value of income transfer and resource entitlement programmes.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun Nov 21st, 2010 at 04:35:51 PM EST
[ Parent ]

Display:

Occasional Series