IMF delays €22.5bn loan approval over Dáil vote

This is a hugely significant event. It shows that Labour and Sinn Fein are fooling the people and themselves if they think that they can cut less than the deal with the IMF/ECB. Fianna Fail has made Ireland a client province of moneylenders. Independence ! Sovereignty ? Cowen – hang your head in shame.

11/12/2010THE IMF has postponed approving its €22.5 billion loan to the country after Taoiseach Brian Cowen’s decision to put the conditions of the package to a vote in the Dáil next week. Both the IMF and the Department of Finance refused to say what the fallout of a “no” vote would be for the money — a third of the €67.5bn bailout finalised earlier this week.

European Commission officials were shaking their heads in disbelief at Fianna Fáil’s decision to look for a vote at this late stage, saying it was misleading since the agreement with the EU has already been signed.

“It is a legal document,” said a commission source, adding that a rejection of the terms of the loan “would give a less than reassuring message to the outside world”.

The Fianna Fáil Parliamentary Party unanimously agreed on Wednesday to hold the vote “to add political legitimacy” to the agreement and Mr Cowen was quoted as saying it would give the opposition the opportunity to “either come clean, recognise the deal is essential or spell out their alternative”.

The Government did not tell the IMF it was hoping to smoke out the opposition, but told them that while parliamentary approval was not legally required, they hoped the vote would “strengthen political support for the agreement”.

The IMF said “in deference to Ireland’s parliamentary process, the IMF has decided to postpone consideration by its board of the proposed loan” until after the vote.

It added: “Assuming parliamentary support of the package, the managing director could recommend approval by the IMF executive board of the proposed €22.5bn IMF loan as early as December 16.”