Ireland, is getting a bail out from the IMF as well as the European Central Bank.
The bailout would be in the tens of billions of euros, he said, adding that the final figure was subject to negotiations. Analysts and politicians have suggested that the size of the package may well approach €80 billion, or $109 billion.
Perhaps €15 billion would be set aside in a fund to support the country’s banks, which have been hemorrhaging deposits. An additional €60 billion or so would be allocated to Ireland itself so as to give it the flexibility of staying out of the bond markets.
Negotiations for the terms are not finalized but the New York Times implies the deal will have Greek like austerity measures. Bend over Ireland.
Mr. Cowen has said Ireland is already putting an adequate budget-cutting plan in place, but given the size of the bailout being discussed, it would be surprising if E.U. and I.M.F. officials did not demand more cuts, accompanied by tax increases.
“There will be a lot of pain for the taxpayer and a lot of people will lose their jobs,” said Michael Noonan, the chief economic spokesman for Fine Gael, the main opposition party.
Gets better, Ireland, while saving the banks is talking about cutting their minimum wage. Right o, they borrow in austere terms to fill their banks with (cough) firepower yet claim the problem isn't their beyond belief low 12.5% corporate tax rate, nope, just squeeze workers.
There was a run on the banks, implied and of course the bail out is all about the banks:
E.C.B. data shows that €130 billion in outside funding has been funneled to Irish banks, with €95 billion being directed to the large locally based banks. These banks are now wholly dependent on Europe for their survival, running up loan-to-deposit ratios that now exceed 160 percent, above and beyond prudential banking guidelines.
On Nov. 12, the Bank of Ireland reported that its outside borrowings had increased by €12 billion, or 11 percent of its assets. And on Nov. 19, Allied Irish Bank reported that its additional borrowings were €27 billion, or 16 percent of its balance sheet.
Barclays Capital estimates that €28 billion in extra funding is going to Anglo Irish, the troubled real estate lender that has chalked up more than €30 billion in failed loans.
It appears Ireland's Prime Minster is trying to postpone an election, claiming it would be irresponsible to allow the people to boot him out of office at this critical time.
Simon Johnson claims one of the benefactors of this latest crisis where one must squeeze workers is China, as a more snide type of commentary, simply because they will be the only nation left to bail out the IMF.