ECB/IMF 6.9% for nine year money – about 5% too high. Now is the time to play a few of our cards.Bring on Paul O’Connell – we mean business>

The interest rate to be charged on the European Unions/International Monetary Fund package is likely to be 6.7% for nine year money.
This compares to an average borrowing rate of 4.7% on funds raised by the NTMA over the past two years. In May, Greece arranged an EU/IMF loan for three years at 5.2%.
The Government’s four year plan assumes that by 2014, interest payments will have increased from €2.5 billion to €8.4 billion a year – around one fifth of all tax revenue.

These figures do not include any borrowing that may be made for extra capital for the banks.
This level is simply unaffordable. It is now time to take serious contingent decisions and potentially rework the budget. We should examine all options and be afraid of none. NOW is the time to discover that we represent the Irish People and ask them are they joking? The Taoiseach should arrange a national emergency meeting with Enda Kenny and Eamonn Gilmore to discuss our next move.

Bill says: – Just a few options that quickly come to mind. If you corner us and insult my country – well watch out.
1. Force all bank bond holders in Anglo/AIB/BoI into a debt for equity swap. Let the bondholders take the hit.
2. Go to Merkel and tell her that Ireland cannot afford 6.7% or anything like it and that we will burn the bondholders which will have huge consequences for Portugal, Spain and Italy and then the core Euro countries.
3. Go to IMF alone and see what the options are?
4. Go to China and try to do a deal.
5. Go to the US government
6. Go to the Gulf States Sovereign funds and try to get an accommodation
7. Leave the Euro and devalue and burn the bond holders all together.
8. Tell them the above and watch them flinch and blanch.