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EU bailout could see us short-changed for second time in 10 years

Richard Curran


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Ajai Chopra (left), then a deputy director at the IMF, on his way to the Central Bank HQ in 2010. Photo: Frank Mc Grath

Ajai Chopra (left), then a deputy director at the IMF, on his way to the Central Bank HQ in 2010. Photo: Frank Mc Grath

Ajai Chopra (left), then a deputy director at the IMF, on his way to the Central Bank HQ in 2010. Photo: Frank Mc Grath

It is a tale of two EU bailouts. When Ireland was hit by the last banking crash and recession we were told we could not default on bank bond holders. No haircuts on senior debt. Instead, the EU would be available to lend us billions of euro in a bailout to get through the crisis.

These would be loans. There was no free money.

This time round and all of Europe is suffering in the economic crash caused by the coronavirus. The European Commission has announced its intention to set up a €750bn bailout fund which will involve €500bn in grants that do not have to be paid back and €250bn of loans.