News Editorial

Friday 9 December 2016

At least we know the grim reality

Published 29/11/2010 | 05:00

ALMOST all the main lines of Ireland's financial bailout had been well publicised before last night's endorsement of the €85bn agreement by the European Union Council of Economic and Finance Ministers. But the details are still of the highest importance.

  • Go To

They start with the breakdown of the €85bn. Of this, €10bn will go to those voracious consumers of public money, our banks. After that comes €25bn for "contingencies", of which half will be found from the National Pension Reserve Fund. Given the banks' record, the word contingencies does not ring pleasantly.

The remaining €50bn will cover, quite simply, Government deficits. The average interest rate on the loans advanced by the EU, the ECB -- and the other partners in the deal, Britain, Denmark and Sweden -- will be 5.8pc. Such a high rate is disappointing, but better than the previously rumoured 6.7pc.

Please sign in or register with Independent.ie for free access to Opinions.

Sign In

Read More

Don't Miss

Editor's Choice