Ireland'S 2009 budget deficit totalled 14.3% of GDP, EU says

[MPB]

At least we have the distinction of being better than Britain in this case.

But they have their own money and control of their own interest rates.

We have nothing but nice Germans, lending us money to give to other nice Germans.

[droghedasouth]

But they have their own money and control of their own interest rates.

We have nothing but nice Germans, lending us money to give to other nice Germans.

They [the UK] have some control over short-term interest rates.
They have no control over long term interest rates which are set by the markets.

[Cassandra Syndrome]

Why has our borrowing risk changed?

Everyone knew about the 4bn going into Anglo, what does it matter how you account for it -the commercial realities are the same.

If I was an international bond trader, I wouldn't have time to itemise say Latvia's budget statement. I would work of the headlines, say x% deficit of GDP. I would assume that this is correct before reading into was such a cost amortalised, capitalised, prepaid or whatever.

But if the government said it was going to be around 11% and now its nearly 15% and the worst in the EU (quite an achievement) traders may and probably will trawl a little bit more of our data.

[Libero]

Why has our borrowing risk changed?

Everyone knew about the 4bn going into Anglo, what does it matter how you account for it -the commercial realities are the same.

You'd be amazed at how often professional investors make decisions based on headline figures, and don't dig beneath.

Remember also that Ireland is a peripheral part of the Eurozone bond market, with (still) relatively small issuance and liquidity. As a result, lots of broad bond funds include some Irish exposure without much thought, so long as our bonds in issue pass some basic screening and we don't smell of Greece. Today's news doesn't help on either of those fronts, even if it's not really new news.

[Libero]

@ Cassandra: great minds, etc.

[FlyOver]

Ya couldn't make this stuff up if you tried!!!!!

From the RTE news..

National debt to rise

Meanwhile, the national debt is expected to rise to €94bn by the end of this year and to €112bn by the end of 2011, from just over €50bn at the end of 2008, the Oireachtas Public Accounts Committee has been told today.

Chief Executive of the National Treasury Management Agency John Corrigan said the cost of servicing the national debt this year will be about €5bn.

He confirmed the State can borrow money on the international markets at a much lower rate than countries like Greece.

He said yesterday Ireland only had to pay 4.6% for funds, compared to the 8% that Greece is paying.

Mr Corrigan also said about 14% of all taxes collected this year will go to pay for the national debt.

RTÉ News: Ireland's deficit highest in eurozone in 2009

[Cassandra Syndrome]

You'd be amazed at how often professional investors make decisions based on headline figures, and don't dig beneath.

Remember also that Ireland is a peripheral part of the Eurozone bond market, with (still) relatively small issuance and liquidity. As a result, lots of broad bond funds include some Irish exposure without much thought, so long as our bonds in issue pass some basic screening and we don't smell of Greece. Today's news doesn't help on either of those fronts, even if it's not really new news.

Just seen one of the few speakers on CNBC that talks sense, Jim Iuorio, say that most traders are fools to Rick Santelli another one of the few commentators who talks sense.

[Cassandra Syndrome]

@ Cassandra: great minds, etc.

Ha ha! THanks.

Was going to simply say snap, but thats far more elegant!

[maxthedog]

From the RTE news..

Quote:
National debt to rise

Meanwhile, the national debt is expected to rise to €94bn by the end of this year and to €112bn by the end of 2011, from just over €50bn at the end of 2008, the Oireachtas Public Accounts Committee has been told today.

Chief Executive of the National Treasury Management Agency John Corrigan said the cost of servicing the national debt this year will be about €5bn.

He confirmed the State can borrow money on the international markets at a much lower rate than countries like Greece.

He said yesterday Ireland only had to pay 4.6% for funds, compared to the 8% that Greece is paying.

Mr Corrigan also said about 14% of all taxes collected this year will go to pay for the national debt............

Did you notice he spin it was 50 Billion it will be 112BN ,

But no mention of the fact it is now 84 Billion.

Do RTE now send their news releases directly to FF for editing ?

[FlyOver]

If I was an international bond trader, I wouldn't have time to itemise say Latvia's budget statement. I would work of the headlines, say x% deficit of GDP. I would assume that this is correct before reading into was such a cost amortalised, capitalised, prepaid or whatever.

But if the government said it was going to be around 11% and now its nearly 15% and the worst in the EU (quite an achievement) traders may and probably will trawl a little bit more of our data.

Well for any of the bond traders who need a little help with their homework...I give you Table 10 (Projections for the Public Finances 2009 - 2014) from the Ireland - Stability Programme Update December 2009

It's a piece of fiction worthy of a Hugo Award

http://www.budget.gov.ie/Budgets/201...inal%20SPU.pdf