February 6, 2011

Ireland bail-out not enough according to IMF

The IMF’s report on the Irish deal projects cumulative general government deficits of €44.8 billion over the period 2011-2013.
Add in €16.4 billion to honour long-term bond redemptions and €9.3 billion for principal payments on promissory notes and you get €68.7 billion.
The EU-IMF programme provides €50 billion over the period 2011-2013 to fund budget deficits and other cash payments. This means that, based on the IMF’s own deficit projections, the Irish government will need to come up with an additional €18.7 billion to fund the state over the next three years and also honour comittments on bonds that it has issued.
Where is Ireland going to find 18.7 billions more needed to finance his debt?
This is if the current debt estimates for Irish banks are correct and assuming that no further hidden debt will pop out in the future.

A full PDF version of the IMF report is available HERE


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