Categories Bailout Barney the Dinosaur and the NTMA Post author By Philip Lane Post date February 8, 2011 10 Comments on Barney the Dinosaur and the NTMA Namawinelake has a post today on this topic: you can read it here. Related Tags Irish public debt ← What do you mean “we”, white man? → Anglo Trading Update & Orders on Deposits 10 replies on “Barney the Dinosaur and the NTMA” Thanks for that Phillip – just added that site to my favourites. Great analysis by namawinelake – can’t wait for the response. You mean Barney is not real? Things are getting serious. Dear All, The entry on NAMAwinelake is slightly tongue-in-cheek because the NTMA show a graph on their website with an asterisk for a category of debt which is not then described. And they decided to shade it in a garish purple on the graph. In truth, it seems to relate to cash on hand available to the NTMA. However the serious point is that this cash may have more than one claim on it. We are to contribute €17.5bn to the bailout, of which €10bn is coming from the NPRF and the remainder from the NTMA. It is not clear to me that the NTMA has €15bn available to redeem maturing debt but as mentioned in the entry, there is a query with the NTMA and all may be cleared up soon. Barney is actually purple and green, so government bonds are in there too. @Jagdip – “However the serious point is that this cash may have more than one claim on it.” This is a fairly routine bit of trickery by politicians. Either using the same pot of money to say they are paying for two different things or claiming ‘new’ money to fund something when it’s actually something that’s already been announced. FF managed to learn quite a lot from observing Blair and Brown in the UK. @Jagdip Have you any idea whether this 15bn or so NTMA cash is flattering the banks deposit figures? @grumpy It depends on which deposit figures you’re referring to – it’s not flattering private sector or non-resident deposits which are probably the totals being most watched at the moment. @all The NTMA has provided an initial response to the request for an explanation and (1) they removed the asterisk from the term “Liquid assets”! and (2) they say it refers to “Exchequer, Deposits and CSRA account balances” The follow-up questions are (1) might these funds be needed to fund the deficit or other needs eg the banks (2) the liquid assets roughly equal the maturities in 2011, but what about 2012 – do we need return to the market to fund these? These are not new questions and I know this topic has been addressed a couple of times on here with the concern that we are not sufficiently funded to redeem this maturing debt and either we need return to the market or get a bigger bailout. @Jagdip “We are to contribute €17.5bn to the bailout, of which €10bn is coming from the NPRF and the remainder from the NTMA.” Coincides nicely with the recent cheering news from Anglo. Fantastic. Anyone heading for the 19th hole? 12.5bn from the NPRF and 5bn cash balances wasn’t it? Rinse and repeat from NWL: The thing that I am curious about is that the envisage the whole 17.5bn being spent this year. I knew we were putting up 10bn of our own money for recapitalisations/deleveraging BUT: -there have been subbie deals done with AIB, BOI and theres currently an offer ongoing with EBS. Not to mention the fact ILandP should be able to raise their capital themselves. So…if the 8bn we allocated purely to recapitalisation won’t be fully needed then I guess we are still going to find a way to spend it, perhaps by using it on the deficit and reduce our 2011 borrowing at 5.8%. Comments are closed.