IMF Completes Ninth Review Under the Extended Fund Facility with Ireland and Approves €0.97 Billion Disbursement


5 replies on “IMF Completes Ninth Review Under the Extended Fund Facility with Ireland and Approves €0.97 Billion Disbursement”

Foolish me, I never thought it would be so easy to fool the IMF but now I understand it is easy to fool those that want to be fooled.

@ Robert Browne

The IMF has a resident representative in Dublin who operates from the Central Bank’s headquarters. He has a handy earner and should know what’s going on. I spoke to him once and I’m not sure.

Enda Kenny was in Silicon Valley this week and when he talks about high tech, he reminds me of Brain Cowen. As for Richard Bruton, credit where it’s not due, he has certainly mastered the art of spin. His Department issued a press release on Thursday saying exports in 2012 at ‘€182.182bn, were at their highest level.’ The CSO’s total for 2012 used in the national accounts is €177.134bn.

It’s surreal to observe headlines such as ‘Irish growth bucks eurozone trend’ (FT) and ‘Ireland to lead way with eurozone growth’ (Irish Independent) when absent exclusive dependence on intercompany accounting transactions at non-Irish multinational companies, a contraction would have been reported.

The two positive contributors to growth were net exports at 2.8% and capital formation at 0.1%. However, the exports gains were all in services, specifically ‘computer services’ which grew 15% but this mainly reflects fake exports arising from diversion to Ireland of end-user revenues in other markets by the likes of Google, Microsoft and Facebook.

For example in 2011 (last year for which financial reports are available), Google Ireland’s reported revenues rose by €2.3bn. In recent years, Microsoft’s annual rises have been at a similar level. Apple hides its Irish financial data but as Ireland is the location of its main ex-Americas operations centre, it can be assumed that a similar situation applies.
Google booked 45% of its global revenues in Ireland in 2011.

Net exports of €4.4bn were helped by the timing of intercompany charges.

Now that headline services exports have overtaken goods exports, the official line is that this is evidence of ‘moving up the value chain.’ There are lots of idiots who repeat the nonsense.

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