Donal O’Donovan: We're still a great deal away from promised land
EUROPEAN finance ministers are finalising a scheme that will give Ireland more time to pay back a share of the €64bn in EU/IMF bailout loans that have kept the State afloat. Great, or is it really? Here's what you need to ask:
So Michael Noonan has finally got the promised deal from Europe to cut the cost of bailing out the banks? No. This new deal we're talking about now is separate from negotiations over the banks.
It relates to around €17.7bn of loans from the European Financial Stability Fund, one of the three main bailout funds. As things stand that debt starts falling due in 2015, and we'll still be paying it back in 2041. The plan is to give Ireland more time to repay that portion of government debt.