Master Loan repurchase agreements :) - our €10bn 'loan' to Anglo

[HarshBuzz]

Sorry. I can't see it

it's the 'Master Loan Repurchase' one

(how could you not work that one out? )

[hammer]

@ Leaders Questions BIFFO stated that if we dont recapitalise ANGLO the cost will be €65,000,000,000

Well done Biffo. Your doing a great job

[He3]

When did this happen and how was it approved?

One of the biggest creditors of Anglo is the Central Bank, which has very quietly lent Anglo over €10bn under something called the "master loan repurchase agreement". (It doesn't want you to know about this by the way.)

Is there any rational answer to this?

Anglo is our financial Stalingrad. We should close it down tomorrow, deal with the creditors and get the hell out. Ireland can't afford to spend another cent on it.

The financial markets would shrug and move on if we did so. What most people fail to understand is that financial markets are forward-looking. Tomorrow's prospects, not yesterday's mistakes, are what drive investors. Markets are not in the business of punishing countries. There is no money in punishment. They want Ireland to grow, so that they can make money. Could someone please explain this to the fanatics who run this place and their lackies in the media who pedal their propaganda?

[katy brock]

it's the 'Master Loan Repurchase' one

(how could you not work that one out? )

Fair play, I never looked at that one. I thought it might be about buying carpets on the HP.

[HarshBuzz]

When did this happen and how was it approved?



Is there any rational answer to this?

eh...systemic importance....going forward....international confidence....smart economy...Lehman Brothers....eh, eh, eh

[makingjam]

The 'Master Loan Repurchase Agreement' is an interesting one. MLRAs seem to be a hangover from when we had our own currency and Ireland's CB was the lender of last resort, a job I thought had been taken over by the ECB.

According to the article the MRLA set up for Anglo accepts collateral that the ECB liquidity operations does not. I wonder what kind of stuff the CB got as collateral on these?

Any shortfall on the MLRA would have to be made up by the CB (or, more likely, the DoF)..

[MsAnneThrope]

I don't think it's apt at all

stupid, misguided, uninformed, pig-headed, ignorant, financially illiterate...they're more apt in my opinion

You're right of course HB, but the trifling obstacle of getting it past the Editor comes into play

[HarshBuzz]

You're right of course HB, but the trifling obstacle of getting it past the Editor comes into play

we need samizdats!

off to the google-u-lator with you

[MsAnneThrope]

we need samizdats!

Duly googled. Imagine what those boys could have done had they the internet and online anonymity back then!

Back to the €10bn of CB funds. What is all that about and, perhaps more importantly, when was that money lent? McWilliams doesn't specify a timeframe for the transaction(s)?

[Aindriu]

This was the bit I loved:

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[COLOR=#306294]Brian Lenihan[/COLOR] and [COLOR=#306294]Brian Cowen[/COLOR] seem to believe that stuffing good money after bad -- and in the process enfeebling the country -- is the way forward. This is the behaviour of fanatics, neither of whom has ever worked in financial markets and so they don't understand the people who they are trying to impress.

[/COLOR]