So the IMF and ECB tidy up the emergency loans and hope that Ireland is saved, but are we really rescued? It looks like we have converted cheap loans for dearer loans. On the positive side, it looks like, finally, Anglo Irish Bank is sorted and will be closed. But how will the other banks manage and will they get enough funds to lend out to business in the near term? Will mortgages be available again for home purchasers? These points are critical and were not really answered last weekend.
Let us be fairly truthful Ireland cannot afford this level of lending. The major European and British banks are keeping the Irish loans at 100 per cent in their books. Surely, it is not fair that the Irish taxpayer should pick up the losses. We think not, this is a pretext of a solution. If by 2013 it does not work, then there will be write offs. Why not do that next year and stop strangling the Irish economy.
See The Munster Express newspaper for full story or subscribe to our PDF version.