IMF Completes Seventh Review Under the Extended Arrangement with Ireland and Approves €0.92 Billion Disbursement

IMF press release here.

10 replies on “IMF Completes Seventh Review Under the Extended Arrangement with Ireland and Approves €0.92 Billion Disbursement”

Two issues on the IMF release itself.

Firstly, it is out of date. The numbers have deteriorated since June, in particular the income tax returns. There is one interesting idea from ‘Niall’ on why this might be so.
The income tax numbers
[YOY monthly comparisons for income tax (2012 vs 2011), May +9.4%/ June +8.8%/ July +2.3%/ Aug +1.6%]

Secondly, why this:
“Lowering funding costs by weaning banks off the costly Eligible Liability Guarantee scheme in an orderly manner is essential, as is reducing operational costs. ”

The ELG banks cost are currently revenue to the State, and the State is paying very dearly for that revenue in its bond prices. So, per the IMF, the banks are to be put back into profitability so that future profits can be handed back to the private sector; past losses remain with the State citizens.
IMHO, the banks should be passed back to the private sector with a €64 billion liability attached. Every cent should be reclaimed, even if it takes a thousand years.
If the private sector won’t buy that, and they won’t, then the banks should remain in State ownership until the full bill is paid.

Surely the IMF don’t think we are complete idiots, despite much evidence to the contrary.

300,000 have difficulty paying energy bills, as costs set to rise again

Figures compiled by the Irish Independent show that more than 314,000 customers of the ESB/Electric Ireland, Bord Gais, Airtricity and Flogas are having difficulty meeting their repayments.

The shocking new figures come as Bord Gais was granted an 8.5pc rise in gas prices which will push the average home’s annual costs up by €70 to close to €1,000 a year.


The fiscal adjustment is unconscionably skewed towards the lower deciles of the population while many in the upper deciles remain untouched. Please address this in discussion with the Irish authorities.

Your continuing support on ameliorating the unconscionable socialization of dead banks’ debts on the Irish citizen_serfs is acknowledged. The Conflationist Fallacy has impacted on the Irish citizen so such an extent that 50% of the population are at breaking point.

The Board Gas 8.5% price increase. What was the justification, is it attributed to gas hub exchange pricing or distribution costs. In other words is there justification or was this a favour from FG/Lab

The raison d’etre of the IMF is to revive the body and keep it barely alive so as the life can be sucked out of it for decades. Their reports to the unwashed public are PR with a view to holding out enough hope to improve their odds of being repaid.

IMF-speak “Ireland’s recovery remains fragile.”

This is code for: “We don’t believe the forecasts and/or think the Irish government is doing enough to make it happen.”

Delusional Economics on the Slow Learners in Europe

If the comments from overly excited EU parliament members leaving a “closed door” meeting with Mario Draghi are correct then the ECB president is about to announce a plan to buy unlimited short-term sovereign debt up to 3 years on the proviso that national governments formally request assistance and are therefore bound to fiscal compliance via an MoU.

I am yet to hear any negative reaction for the plan from anyone of importance within the European elite and it is a fair assumption that the major players have been pre-informed of the basics of the proposal. The question is just how much has been shared and whether this is actually a “plan”, or simply a vague proposal for one.

I find it difficult to believe that the “open ended” nature of the plan is acceptable to the many Northern European governments and it is also difficult to see how this isn’t direct funding of governments. We’ve also already heard from the German Finance Minister, Wolfgang Schauble, warning people to lower their expectations. That said, if Mr Draghi has managed to negotiate the political minefield of Europe to allow for unlimited purchases of sovereign bonds then it is a huge break-through. I do, however, remain sceptical that this is the case given the proximity to the German constitution court decision and the multitude of times previously these sorts of rumours have been shot-down.

Minor point: 0.92 billion IN from IMF; 1 billion OUT to Anglo bondholders; Irish financial conduit working well ..

@ JR

There will be a need for some sort of way to remember the damage the banks did to the country. AIB collapsed in the early 80s and again in 2009 and it can never again be business as usual . I wonder what the most appropriate method to get the €64bn into the mind of the public of the future would be.

ECB Press Conf Live on Bloomberg

Arthur Beesley: Any commnent on an Irish banking debt deal?

Mario Draghi: On the [..] question I have no news to give you.

One minute ago …

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