Super Mario to the rescue- so what's the plan, Signore Draghi?

[disability student]

i thought noonan was going around a week or two back tonguefarting that it was great news ireland had access to the markets again?

LOL

Market interest rates are more expensive than ECB/IMF rates which i think is 6.25% not sure

[riposte]

The scheme is only open to countries who themselves are active on the markets. You might need a little assistance from Google translate here. It's in Flemish (Dutch-ish)
Second bullet point from the bottom.

http://www.standaard.be/artikel/deta...MF20120906_147

Also in the small print:
- in order to please the Germans every purchase made by the ECB will be "sterilized", meaning that the equivalent in money will be taken of the market by getting the banks to park it in deposit accounts with the ECB.
- The ECB also forfeits its privileges and works under the same rules and interest etc. as other bondholders.

Yeah Ephilant ...... RTE has just confirmed that Draghi said it will apply to Ireland "as it comes out of the Bailout Program."

[disability student]

Yeah Ephilant ...... RTE has just confirmed that Draghi said it will apply to Ireland "as it comes out of the Bailout Program."

Bailout program ends around end of year 2013/2014

[PaddyJoe]

Yeah Ephilant ...... RTE has just confirmed that Draghi said it will apply to Ireland "as it comes out of the Bailout Program."

The press release on OMT says:

Outright Monetary Transactions will be considered for future cases of EFSF/ESM macroeconomic adjustment programmes or precautionary programmes as specified above. They may also be considered for Member States currently under a macroeconomic adjustment programme when they will be regaining bond market access.

That'd a bit ambiguous quite apart from the clumsy grammar. Note that these new programmes carry strict conditionality:

A necessary condition for Outright Monetary Transactions is strict and effective conditionality attached to an appropriate European Financial Stability Facility/European Stability Mechanism (EFSF/ESM) programme. Such programmes can take the form of a full EFSF/ESM macroeconomic adjustment programme or a precautionary programme (Enhanced Conditions Credit Line), provided that they include the possibility of EFSF/ESM primary market purchases. The involvement of the IMF shall also be sought for the design of the country-specific conditionality and the monitoring of such a programme.

In effect Ireland and Portugal would end Troika bailout 1.0 and then move to Troika bailout 2.0.
http://www.ecb.int/press/pr/date/201...0906_1.en.html

[Ephilant]

Bailout program ends around end of year 2013/2014

Unless they bounce you into a second "program", which I hear is very much on the cards?

[riposte]

Bailout program ends around end of year 2013/2014

Thanks for that DS ..... and I thought we were in it until 3013.

This scheme is about reducing the interest rates on borrowings ........ nothing to do with reducing our exposure the bank debt.

Being able to borrow at lower interest rates will enable Ireland to fund it's current budget deficit.

The resolution of the Bank debt and bank re-capitalisation is a different day's work

[PaddyJoe]

LOL

Market interest rates are more expensive than ECB/IMF rates which i think is 6.25% not sure

The EFSF rate is between 2.5% and 3%. I believe the Dept of Finance decision to sell bonds on the open market recently has been estimated as costing us an extra 900 million in repayment and interest costs.
That was one very expensive mistake.

[riposte]

The EFSF rate is between 2.5% and 3%. I believe the Dept of Finance decision to sell bonds on the open market recently has been estimated as costing us an extra 900 million in repayment and interest costs.
That was one very expensive mistake.

agreed .......http://www.politicalworld.org/showpo...46&postcount=9

[Dr. FIVE]

http://trueeconomics.blogspot.ie/201...ghtly.html?m=1

[C. Flower]

agreed .......http://www.politicalworld.org/showpo...46&postcount=9

I was surprised at how quiet they kept about "our return to the bond market."

That whole business smells of a rat.

How much is it going to cost us, paying off the interest on those bonds ?

[Dr. FIVE]

Monti

http://www.businesspost.ie/#!story/H...c-c314b7574220

[Dr. FIVE]

http://www.ft.com/intl/cms/s/0/46503...#axzz25mXBVrfP

[PaddyJoe]

Confirmation today at the ECB press conference from Draghi that a country in a bail out programme would not be eligible for Outright Monetary Transactions.

Portugal is example of significant progress, Draghi says. The reform agenda is in place.

The OMT would not apply to a country under a bailout programme until that country has come back to the debt markets, with "full market access". Portugal does not have full market access, despite succeeding with a bond issue yesterday.

http://www.guardian.co.uk/business/2...-mounts-draghi