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Thread: Bond Auctions - How can Ireland repay exisiting bonds?

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    Default Bond Auctions - How can Ireland repay exisiting bonds?

    FF have said they are not going back to the bond markets until next year. There is 800 million to be repaid on the 8th of December, and a very nice bond of 2 billion to be repaid on 14th January 2011.

    So, that is almost another 3 billion that has to be found from somewhere before mid January. Over February ,March and April another 4 billion needs to be found to repay some of those short term bonds.

    Can this money be found without EU/IMF help? I doubt it.

    Well done to Lenihan on giving us the "cheapest bailout in the world".

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    Politics.ie Member gijoe's Avatar
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    They have cash in hand of over €10billion I think.

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    Quote Originally Posted by gijoe View Post
    They have cash in hand of over 10billion I think.
    Not after today.

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    On Morning Ireland Lenihan said the NTMA had decided it could not proceed with planned auctions in October and November.

    Game over.
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    I think we have already borrowed more money so we can repay the existing bonds half way into 2011. It is like running a country on a credit card. We pay off the minimum and let the debt roll over.

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    Politics.ie Member Thac0man's Avatar
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    Quote Originally Posted by Tony Liar View Post

    Can this money be found without EU/IMF help? I doubt it.
    I believe that EU governments as a block already have about 30% of our recent bond issue. Thats Europes safety value on us I think. It will cost them, but if the exchanged their later maturing bonds, which have a higher yield, for part of the soon to be due bonds which have a lower rate, it could stave off collapse. Its not that we can't borrow 1.8 Billion (At nearly 7% apr), I think its that that amount could trigger a steeper decline and make our inevitable default closer.

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    Having looted the treasury and borrowed till the lenders will lend no more, it is time for FF to execute its own bailout plan - grinning as they hand over office to FG/Lab.
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    Politics.ie Member gijoe's Avatar
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    Quote Originally Posted by He3 View Post
    On Morning Ireland Lenihan said the NTMA had decided it could not proceed with planned auctions in October and November.

    Game over.
    That's my feeling as well. I think we will be in the grasp of the IMF/EU Statbility Fund before the next auction in January. Canceling the bond auctions was an admission of defeat.

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    So, does this mean that Irish bonds are still traded or do investors loose interest for a while.
    I notice they are still valued at about6.6%

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    Politics.ie Member Dreaded_Estate's Avatar
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    We have no major bonds maturing this year.

    We have coupon payments of about €1bn in 2010 and €5.6bn maturing by April 2011.

    So €6.6bn to repaid by April 2011

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