Anglo-Irish satirist, essayst, political ... - Silvia Mazzau
Anglo Irish RIP
2
John Lyons TD 0612 WHAT DOES THE DEBT DEAL MEAN? The Government successfully negotiated a deal with the European Central Bank that means we will have much longer to pay this debt - taking a huge amount of pressure off our public finances. WHAT IS A PROMISSORY NOTE? In 2008, the Fianna Fail government, with the support of Sinn Fein, had the bright idea of bailing out the banks including the toxic Anglo Irish Bank and Irish Nationwide. They did this by issuing a promissory note, or an 'IOU' to Anglo. This was a complex arrangement but the bottom line was that this money had to be repaid from public money, to the tune of €3.1 b every March for eight years. To add insult to injury, Fianna Fail gave themselves an interest rate holiday, ensuring they didn't have to start repayments in the run in to the General Election in 2011. Thanks to this new deal, the €3.1 b repayment will not be made this March or any other March. WHAT DOES THIS DEBT DEAL MEAN FOR HOUSEHOLDS? This deal means we will have to borrow less in the coming years than would otherwise have been the case. It will reduce by €1b the gap between our revenue (income) and expenditure every year. As a result, our debt payments will be far more manageable which means there will be fewer cuts and fewer tax increases in future budgets. WHY IS THIS A GOOD DEAL FOR IRELAND? The deal means that rather than paying this debt in massive annual instalments, we will extend the payments over a much longer period of time, making the payments far more affordable. For example, most people, if they owed €1,000 and they didn't have to pay it back for 30 years, would recognise that as a very good deal. Similarly, this historic deal is a major boost for the country. WAS A DEBT WRITE-OFF EVER ON THE CARDS? No. The ECB has no legal power whatsoever to write down Ireland’s debt, or anybody else’s debt for that matter. The Greeks, for example, are in a far worse situation than we are, and when they asked the ECB for a write-down, they were sent away with a flea in their ear. Our negotiating team knew better than to make themselves look foolish by asking for something they knew could not be conceded. A default on our debt would plunge the country into an even worse economic crisis that could last for decades. LABOUR STICKING TO ITS PROMISES Before the last election Labour promised that we would renegotiate the bad deal entered into by the previous government and that we would lift the burden of that unfair deal off the Irish people. Since we came into Government, we have been doing just that inch by inch, step by step. There is much more work to be done, and we are not out of the woods yet. Work is underway and on-going to renegotiate the arrangements around the money that the previous government put into recapitalising the banks. We are committed to working towards bringing about recovery and that is what we are doing. The recent debt deal is a major boost for Ireland. The cost of borrowing for the Irish government has fallen significantly over the last few months, reflecting the growing confidence surrounding the Irish economy's outlook. Ireland is now well positioned to be the first bailed out country to successfully exit from a Eurozone rescue programme. ■ No more €3.1b repayments; €1b less in cuts and tax increases ■ Borrowing requirements cut by €20b over next 10 years ■ Anglo Irish Bank wiped off the map AN IMPORTANT STEP FORWARD ANGLO-IRISH R.I.P. DEBT DEAL Q&A 23 21 19 17 15 13 11 9 7 5 3 1 -1 23 21 19 17 15 13 11 9 7 5 3 1 -1 Aug 11 Oct 11 Dec 11 Feb 12 Apr 12 Jun 12 Aug 12 Oct 12 Dec 12 Feb 13 Irish 2 Year Bonds Irish 2020 Bonds IRELAND STEPS CLOSER TO BAILOUT EXIT THE COST OF BORROWING Dáil Éireann, Dublin 2 Tel: 01 618 3280 Email: [email protected] Blog: johnlyonstd.blogspot.com Web: labour.ie/johnlyons facebook.com/JohnLyonsDublinNorthWest @JohnLyonsTD John Lyons TD Working with your Local Labour Team Dáil Éireann, Dublin 2 Tel: 01 618 3280 Email: [email protected] Blog: johnlyonstd.blogspot.com Web: labour.ie/johnlyons ADVICE CLINIC TIMES If you would like to meet me to discuss any issue, I hold regular advice clinics: Mondays at 10am in the Axis Theatre, Main St, Ballymun (ask at reception) Mondays at 12 noon in the Deputy Mayor Pub (upstairs), St Margaret’s Rd, Charlestown Fridays at 10am in the Labour Party Office (above Hickey’s Pharmacy), 5 Main St, Finglas Village All except Bank Holidays and the month of August. Cllr John Redmond Finglas/Ballymun Ward Cllr Steve Wrenn Finglas/Ballymun Ward Emer Costello MEP MEP for Dublin Cllr Andrew Montague Artane/Whitehall Ward Cllr Aine Clancy Cabra/Glasnevin Ward
-
Upload
john-lyons -
Category
Documents
-
view
214 -
download
0
description
Information on the Government's successful re-negotiation of the Promissory Notes - an important committment from Labour prior to the General Election in 2011
Transcript of Anglo Irish RIP
John lyons td 0612
WHAT DOES THE DEBT DEAL MEAN? The Government successfully negotiated a deal with the European Central Bank that means wewill have much longer to pay this debt - taking a huge amount of pressure off our publicfinances.
WHAT IS A PROMISSORY NOTE?In 2008, the Fianna Fail government, with the support of Sinn Fein, had the bright idea of bailingout the banks including the toxic Anglo Irish Bank and Irish Nationwide. They did this by issuing apromissory note, or an 'IOU' to Anglo. This was a complex arrangement but the bottom line wasthat this money had to be repaid from public money, to the tune of €3.1 b every March for eightyears. To add insult to injury, Fianna Fail gave themselves an interest rate holiday, ensuring theydidn't have to start repayments in the run in to the General Election in 2011. thanks to thisnew deal, the €3.1 b repayment will not be made this March or any other March.
WHAT DOES THIS DEBT DEAL MEAN FOR HOUSEHOLDS?This deal means we will have to borrow less in the coming years than would otherwise have beenthe case. It will reduce by €1b the gap between our revenue (income) and expenditure everyyear. As a result, our debt payments will be far more manageable which means there will befewer cuts and fewer tax increases in future budgets.
WHY IS THIS A GOOD DEAL FOR IRELAND?The deal means that rather than paying this debt in massive annual instalments, we will extendthe payments over a much longer period of time, making the payments far more affordable. Forexample, most people, if they owed €1,000 and they didn't have to pay it back for 30 years,would recognise that as a very good deal. Similarly, this historic deal is a major boost for thecountry.
WAS A DEBT WRITE-OFF EVER ON THE CARDS?no. the ecb has no legal power whatsoever to write down Ireland’s debt, or anybodyelse’s debt for that matter. The Greeks, for example, are in a far worse situation than we are, andwhen they asked the ECB for a write-down, they were sent away with a flea in their ear. Ournegotiating team knew better than to make themselves look foolish by asking for somethingthey knew could not be conceded. A default on our debt would plunge the country into an evenworse economic crisis that could last for decades.
LABOUR STICKING TO ITS PROMISESBefore the last election Labour promised that we would renegotiate the bad deal entered into bythe previous government and that we would lift the burden of that unfair deal off the Irishpeople. Since we came into Government, we have been doing just that inch by inch, step by step.
There is much more work to be done, and we are not out of the woods yet. Work is underway andon-going to renegotiate the arrangements around the money that the previous government putinto recapitalising the banks. We are committed to working towards bringing aboutrecovery and that is what we are doing.
The recent debt deal is a major boost for Ireland. The cost of borrowing for the Irish government hasfallen significantly over the last few months, reflecting the growing confidence surrounding the Irisheconomy's outlook. Ireland is now well positioned to be the first bailed out country to successfully exitfrom a Eurozone rescue programme.
� No more €3.1b repayments; €1b less in cuts and tax increases
� Borrowing requirements cut by €20b over next 10 years
� Anglo Irish Bank wiped off the map
AN IMPORTANT STEP FORWARD
ANGLO-IRISH
R.I.P.debt deal Q&a
23
21
19
17
15
13
11
9
7
5
3
1
-1
23
21
19
17
15
13
11
9
7
5
3
1
-1Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12
Feb13
Irish 2 Year BondsIrish 2020 Bonds
Ireland steps closer to baIlout exItTHE COST OF BORROWING
Dáil Éireann, Dublin 2Tel: 01 618 3280 Email: [email protected]: johnlyonstd.blogspot.comWeb: labour.ie/johnlyons
facebook.com/JohnLyonsDublinNorthWest
@JohnLyonsTD
John Lyons TD
Working with yourLocal Labour Team
Dáil Éireann, Dublin 2Tel: 01 618 3280 Email: [email protected]: johnlyonstd.blogspot.comWeb: labour.ie/johnlyons
ADVICE CLINIC TIMESIf you would like to meet me to discuss anyissue, I hold regular advice clinics:
Mondays at 10am in the Axis Theatre, MainSt, Ballymun (ask at reception)
Mondays at 12 noon in the Deputy MayorPub (upstairs), St Margaret’s Rd, Charlestown
Fridays at 10am in the Labour Party Office(above Hickey’s Pharmacy), 5 Main St, FinglasVillage
All except Bank Holidays and the month of August.
Cllr John RedmondFinglas/Ballymun Ward
Cllr Steve WrennFinglas/Ballymun Ward
Emer Costello MEPMEP for Dublin
Cllr Andrew MontagueArtane/Whitehall Ward
Cllr Aine ClancyCabra/Glasnevin Ward
tIMelIne oF tHe proMIssorY note/debt deal
June 2012Restructuring of Ireland's
promissory notenecessary, admits IMF
december 2012We will not make
promissory note paymentin March, says Pat Rabbitte
october 2012We are open to renegotiation
of promissory note, saysGermany
10 January 2013Jose Manual Barroso lendssupport to promissory note
solution
5 February 2013Government Parties are at
one on deal say Tánaisteand Taoiseach
7 February 2013EMC meet to approve details of the deal with the
ECB. Cabinet signs off on deal before EamonGilmore and Enda Kenny provide details to the Dáil.
27 January 2013Eamon Gilmore warns of potentially
catastrophic effect on Ireland if termsare not renegotiated
6 February 2013Economic Management Council (EMC) ie, Taoiseach, Tánaiste,
Ministers Howlin and Noonan meet to discuss progress on the dealand agree on immediate Anglo shutdown. Cabinet meets to approve
legislation and Bill passes all stages in Oireachtas overnight.
renegotIatIng our bank deal: progress Made
Labour committed to renegotiating our bank deal. So far we have:
� Reduced the interest rate on our Troika loans to a value of almost €10 billion, inaddition to spreading out the repayment over a longer time frame
� 50% of sale of non-strategic State assets secured for job creation and stimulus
� Burden sharing of €5b with junior bondholders, and €2b in private sectorcontributions towards the cost of recapitalising the banks
� A far-reaching agreement to break the link between banks and State easing theenormous bank debt burden on the State and aiding our recovery
� Historic deal to restructure the promissory note resulting in €20b cut inborrowing
tHeY saId It couldn't be done:
"The idea that we can unilaterally renegotiate the programme iswrong, and that's what Labour is proposing. Not in the real world."
Micheál Martin, leader of Fianna Fail, 2 February 2011
“It is clear the government’s so-called negotiation strategy on thebanking debt is now in tatters."
Mary lou Mcdonald, sinn Fein, 26 september 2012
“We need the government to stand up for the people and say thatwe cannot take any more, but there is little sign from this coalitionof the strength and resolve necessary.”
pearse doherty td, 31 dec 2012
done deal - tHe response:
"The elimination of the IBRC promissory notes and theirreplacement with new government bonds maturing from 2038 to2053 is an important breakthrough for the Irish Government."
editorial, the sunday times
"This is a very good outcome which represents a small butsignificant step on Ireland's long road to economic recovery."
editorial, Irish Independent, 8 Feb 2013
"Big step for Ireland should lead to giant leap for Eurozone."
editorial, Financial times, 8 Feb 2013
