We'll have to lend Greece about 1 billion euro at the agreed interest rate of 5%. But we'll have to borrow this cash, and the best rate Ireland gets at the moment is 5.4%, meaning we will lend to Greece at a loss of about €4 million per year per billion we lend.
Do I have my calculations right?
Will this extra billion in borrowing add to our deficit? 1 Billion borrowed equals roughly 1% increase in our deficit.