€110BN Greece bailout agreed

[disability student]

EU has agreed that Greece bailout for €110BN is done and agreed by all EU members. I wonder how on earth as to how Ireland would be able to fund this out of their own budget??

EU agreed to bail out for €80Bn and IMF €30Bn.


Link:http://www.examiner.ie/breakingnews/world/110bn-greece-bail-out-deal-agreed-456154.html

[BrendanGalway]

We should give generously. It will look good when we ask for our own IMF Intervention.

[Tony1975]

We should give generously. It will look good when we ask for our own IMF Intervention.

€1.3 billion is our share.

[disability student]

Interesting snippet from that article...

'Spain’s finance minister, Elena Salgado, noted that Greece was a “special case” because the country has admitted faking its budget statistics in past years'.

Greece should be thrown out of Eurozone.

[musashi]

In for a penny, in for a pound.

[DCon]

Interesting snippet from that article...

'Spain’s finance minister, Elena Salgado, noted that Greece was a “special case” because the country has admitted faking its budget statistics in past years'.

Greece should be thrown out of Eurozone.

careful what you wish for.

I would hate to know how our economy has been mis-represented by Lenihan and FF over the past few years.

[Sam Lord]

The markets seem a bit underwhelmed by the deal ...

[ang]

Looks like Angela is going for a treaty as some of us had been predicting:-

Using google translater here:-


Merkel, Westerwelle and Finance Minister Wolfgang Schäuble, presented on a set of demands, which should now be discussed at the EU level. This debate forms part of a treaty, a ban on trade in certain derivatives, the wide introduction of a bank levy and stronger checks and the EU statistics agency Eurostat said Merkel. One must not only fight the fire, but also the cause of the fire, warned Westerwelle. What is needed are more rigorous control of budgetary policy of the euro countries, but also penalties for violation of the guidelines. The construction of a European rating agency, and tighter controls such credit rating will have long debated at European and international level.



http://de.reuters.com/article/topNews/idDEBEE6420AY20100503

[C. Flower]

Looks like Angela is going for a treaty as some of us had been predicting:-

Using google translater here:-



http://de.reuters.com/article/topNews/idDEBEE6420AY20100503

Well spotted. Worth a new thread.

It also says that there will be a number of people in Germany going to court to try to get an injunction against the bail out. The Courts in Germany are independent enough for it to go either way.

[DCon]

Looks like Angela is going for a treaty as some of us had been predicting:-

Using google translater here:-



http://de.reuters.com/article/topNews/idDEBEE6420AY20100503

FF won't like the extra scrutiny.

[ang]

Oh they will hate it Dcon

[C. Flower]

Lenihan says that we will make money from the Greek Bailout :) :) :)


04/05/2010 - 19:16:58
The Finance Minister Brian Lenihan has said no additional borrowing will be required by Ireland to fund the bailout for Greece.

Mr Lenihan also said Ireland will make a profit on the €1.3bn to be loaned over the next three years.

He briefed the Cabinet this evening on the €110bn bailout agreed with Europe and the IMF.

Mr Lenihan said Ireland will not lose out on this in any way.


Read more: http://www.breakingnews.ie/ireland/lenihan-ireland-will-profit-from-greece-bailout-456371.html#ixzz0n0H8AYFN (http://www.breakingnews.ie/ireland/lenihan-ireland-will-profit-from-greece-bailout-456371.html#ixzz0n0H8AYFN)

[DCon]

Lenihan says that we will make money from the Greek Bailout :) :) :)


04/05/2010 - 19:16:58
The Finance Minister Brian Lenihan has said no additional borrowing will be required by Ireland to fund the bailout for Greece.

Mr Lenihan also said Ireland will make a profit on the €1.3bn to be loaned over the next three years.

He briefed the Cabinet this evening on the €110bn bailout agreed with Europe and the IMF.

Mr Lenihan said Ireland will not lose out on this in any way.


Read more: http://www.breakingnews.ie/ireland/lenihan-ireland-will-profit-from-greece-bailout-456371.html#ixzz0n0H8AYFN (http://www.breakingnews.ie/ireland/lenihan-ireland-will-profit-from-greece-bailout-456371.html#ixzz0n0H8AYFN)



With all these profits coming our way, the boom will be back in no time.



Under this plan, the Minister for Finance Brian Lenihan TD estimates that the new agency will do more than break even at the end of 10 years. He is predicting that NAMA will turn a profit of €5.5bn by 2020.

According to the business plan, NAMA will emerge at the end of a decade with net cash of €5.5bn or a ‘net present value’ of €4.8bn.

http://www.businessandleadership.com/news/article/16643/leadership/nama-to-turn-5-5bn-profit-by-2020-says-government

[disability student]

Lenihan says that we will make money from the Greek Bailout :) :) :)


04/05/2010 - 19:16:58
The Finance Minister Brian Lenihan has said no additional borrowing will be required by Ireland to fund the bailout for Greece.

Mr Lenihan also said Ireland will make a profit on the €1.3bn to be loaned over the next three years.

He briefed the Cabinet this evening on the €110bn bailout agreed with Europe and the IMF.

Mr Lenihan said Ireland will not lose out on this in any way.



Read more: http://www.breakingnews.ie/ireland/lenihan-ireland-will-profit-from-greece-bailout-456371.html#ixzz0n0H8AYFN (http://www.breakingnews.ie/ireland/lenihan-ireland-will-profit-from-greece-bailout-456371.html#ixzz0n0H8AYFN)


Really no additional borrowing such as €1.3BN??? They will have to find some leeway in their budget to extract €1.3bn. It seems to me that Lendahand had been porking as before. He told lies before.

Why should we believe him??

[Gruffalo]

With all these profits coming our way, the boom will be back in no time.




http://www.businessandleadership.com/news/article/16643/leadership/nama-to-turn-5-5bn-profit-by-2020-says-government

Apparently we owe Greece 0.8 billion so that would hardly lead to a profit on all of the 1.3 billion.

[kerdasi amaq]

Wouldn't the Greeks be better off borrowing the money directly from our lenders, at our interest rate, instead of paying that interest plus extra to us. What's the catch?

[Sam Lord]

wouldn't the greeks be better off borrowing the money directly from our lenders, at our interest rate, instead of paying that interest plus extra to us. What's the catch?

******nazi alert********
******nazi alert********

[Cassandra Syndrome]

******nazi alert********
******nazi alert********

Would you keep this on topic please, unless you have some explanation for this post.

[Cassandra Syndrome]

Greece is coing to be a complete standstill today with pratically everyone on strike. The IMF and EU seem to fail to grasp the concept that economic activity has to occur for them to achieve the goal of Greece lowering its deficit and retaining order to its accounts.

These severe austerity measures are not going to be accepted by the people who will shut the country down, leading it to bankruptcy.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aSH12qEhdxj0&pos=9

[ang]

Can you really blame people for taking action ? It's another bailout for banks it is certainly not a bailout for the people of Greece. We will all paythis is yet another transfer of wealth from the poor to the so called elites. David Mc Williams has written a good article in todays Indo:-


Now things are getting really bizarre. A few weeks back, this column highlighted how Ireland had changed from a democracy to a "bankocracy". A bankocracy is a state where government policy puts the interests of its banks over the interests of its citizens. Our Government is the conduit for the transfer of wealth from our own "outsiders" -- in this case the ordinary people -- to our own "insiders" in the banking system. But now it is even worse because it is transferring that wealth to the insiders in another country.

Make no mistake about it, the bailout of Greece, which will cost us €1.3bn, is not a bailout for the Greek people, it is a bailout for the banks that lent money to Greece. It is not a loan either: it is a gift. What has been dressed up as a sovereign bailout with an appeal to our sense of European solidarity is nothing more that a direct transfer of money from you to the foreign creditors of French and German banks. These creditors stood to lose if Greece defaulted last week. The "bankocracy" is now transnational.

Think about this. The bailout to Greece comes with conditions. The Greeks will have to suffer austerity and pay more taxes. But what exactly is the actual cash being used for? A considerable amount of it will be used to roll over old bonds. This means that the original investors in Greece -- the banks and investment funds -- will be allowed to reduce their exposure to Greece. In turn, the ordinary taxpayer -- you -- assumes this risk. So the Greek taxpayer and the other European taxpayers are lumped closer together, while the banks that had stood to lose out get away scot-free and are giving the bill for their errors to us, the people who had nothing to do with Greek bonds in the first place.



http://www.independent.ie/opinion/analysis/fatal-attraction-to-euro-driving-us-over-the-edge-2164538.html

Why are we refusing to listen ?? If this money has been so easily found why can't it be used to Invest in our future??

[Andrew49]

Greek protests at turning point. Two people have been killed in a firebomb attack on a bank in central Athens and around 20 people were trapped inside the building. Hundreds threw chunks of marble and sticks at police who responded with tear gas. Greek officers have fired tear gas at protestors trying to break through a police line in front of the parliament. Source (http://www.rte.ie/news/2010/0505/greece.html)

[electionlit]

Looking at some of the reports it appears that some of the protestiors are trying to invade the parliament building to stop the vote being taken.
I can only assume that the police and army will also have their pay and conditions cut. Is it a matter of time before they stand down and join the protests also?

[Andrew49]

Looking at some of the reports it appears that some of the protestiors are trying to invade the parliament building to stop the vote being taken.
I can only assume that the police and army will also have their pay and conditions cut. Is it a matter of time before they stand down and join the protests also?

.... in the birthplace of democracy ...? .... surely not!

[C. Flower]

http://yanisvaroufakis.eu/2013/05/20/monetising-the-ecb-the-latest-insult-to-be-added-on-greeces-multiplying-injuries/

Taking the liberty of quoting Varoufakis in full

Last week another installment of the cruel theatre of the absurd, also known as the ‘Greek Rescue’ (and more recently re-released as ‘Greece’s success story’), was delivered silently: Not for the first time, the bankrupt Greek state borrowed from one arm of the Eurozone to give to another, with massive interest to boot. To be precise, the Greek government borrowed €4.2 billion from the European Stability Mechanism (ESM) in order to repay the… European Central Bank (ECB) €5.6 billion, leaving the ECB with a profit of €2 billion plus from this hideous transaction. Re-pay what exactly?
You may recall that between Greece’s first bailout (in May 2010) and Portugal’s collapse almost a year later (June 2011), the ECB tried, in the clumsiest of manners, to stop the contagion by buying Greek, Irish, Portuguese, Spanish and Italian bonds in secondary markets. As was expected, that ‘program’ (known as SMP) failed for the simple reason that the then President of the ECB, the hapless Mr Trichet, had pre-announced that the ECB would not spend more than €200 billion in that effort: an open invitation to speculators to short these bonds until the ECB’s €200 billion was exhausted, cashing in massively once the ECB withdrew with its tail between its legs (which is precisely what happened).
Still, during that yearlong folly, the ECB accumulated a large number of peripheral government bonds, which it purchased at so-called ‘distressed’ prices; i.e. at a large discount. In the case of the Greek bonds that were thus purchased (and which matured last week), even though the ECB does not tell us how much it paid for them, my information is that it paid less than 64 cents to the euro. In other words, the Greek government bonds that matured last week, owned by the ECB, had a face value of €5.6 billion but cost the ECB only €3.6 billion. Which means that, last week, the Greek government handed over to the ECB €2 billion plus 55.6% interest for two years in addition to the monies that the ECB spent in order to purchase these bonds. If this is not usury, I know not what is.
ECB defenders may say that these ‘profits’ will eventually be returned to Greece, assuming that the Central Banks of the surplus states agree. Perhaps they will. What they forget, however, is that had the ECB not purchased these Greek bonds, they would have been haircut last year, with the so-called PSI of early 2012, and then again last December with the so-called ‘debt buyback’. In short, the bonds until recently held by the ECB of €5.6 billion face value would have shrunk to less than €1 billion (the rest constituting the haircut). Noting that the ECB’s purchase of these bonds did nothing whatsoever to help Greece, the end effect of the ECB’s action was to put the Athens government in the situation it found itself last week: of having to borrow €4.2 billion from the ESM and to add to this pure blood money (i.e. the savings it made by cutting savagely on health, education, pensions, disabled people’s benefits etc.) equal to €1.4 billion in order to redeem the ECB owned Greek government bonds to the full, thus creating the aforementioned €2 billion profit for the ECB. In total, the cost to the Greek state of the ECB’s intervention (taking into consideration the extent to which this debt would have been haircut without the ECB’s intervention) comes to a staggering €4.6 billion. Money that is now being taken out of the Greek economy in ways that crush Greece’s society.
In short, had the ECB not tried to ‘help’ Greece during 2010/11 (by buying these bonds secondhand), the Greek government would now be able either to avoid borrowing the last tranche of €4.2 billion from the ESM or to borrow it in order to invest in our suffering people and/or economy.
Many lament that the Eurozone is a perverse economy in that it has a Central Bank without a state to direct it and states without a Central Bank to back them up. In fact, the situation is worse, as the above tale demonstrates: The Eurozone has a Central Bank that, even when it tries to help its weakest members in the midst of a vicious crisis, it ends up weakening them further; operating unwittingly as a giant squid on the face of their societies.