Ireland, bailout and latest cafebabel.com blog 'Euromyths'

Article published on Nov. 22, 2010
Article published on Nov. 22, 2010
Once again the presentation in the media of the financial rescue package of a eurozone country is plainly wrong. The so-called 'bailout' does not consist in a gift of capital to Ireland, and taxpayers are most likely not to pay anything as a consequence. Extract from cafebabel.com's blog in the dock

The problem faced by Ireland is that due to a lack of trust of investors in its ability to repay its debts, the current interest rate investors would demand on new Irish bonds are prohibitive (around 10%). What other EU countries are going to do is to borrow money themselves at a low rate because investors can trust them to repay, and lend it to Ireland with a small premium. The final rate of interest on the bail-out money is likely to be around 5% for Ireland.

Where are the EU taxpayers here?

Read the full post 'European taxpayers are going to pay to bail out Ireland... Not' on cafebabel.com's latest blog, Euromyths

Main: take the money and run? Image: (cc) Vincepal/ Flickr