Monday, November 29, 2010

Did Ireland Really Get Reamed Worse Than Greece In Bailout Deal?

by Joe Weisenthal

Business Investor
November 28, 2010

Not surprisingly, the opposition Ireland is already out slamming the latest Irish bailout deal.

This is from Labour Party leader Eamon Gilmore:

This deal announced this evening with the EU and the IMF is a national sell out that will leave the citizens of this country with a crippling level of debt for years to come, while the majority of the international bondholders are required to make no contribution at all.

The rate of interest accepted by Fianna Fail is penal and is significantly in excess of the rate that Greece was required to pay. The Irish people will now have to come up with annual interests payments amounting to billions of Euro.

On the matter of the interest rate, that's true, but...

Jamie Coleman at ForexLive thinks it's actually much better for Ireland because it's a 10-year loan deal:

The terms of these bailouts went from being quiet punitive in the case of the original Greek terms (three years) to pretty cushy in the case of Ireland (10 years). Portugal will probably get 20 years to repay when they inevitably come calling…


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