Enumerated cost of rescuing the banks and the on going costs of servicing this debt in terms of the fiscal deficit has been revealed.
(Bare in mind the fiscal adjustment for this year is circa 2bn).
Bank bailout debt costing StateThe annual cost of servicing the debt associated with the financial sector bailout in Ireland in 2008 is estimated at about €1.6 billion, according to figures provided by Minister for Finance Michael Noonan.
This is from an expected cost of €8 billion to service Ireland’s sizeable national debt this year.
Outstanding questions are:
- What happens to the rebated interest once the CB ships on the Government bonds used to replace the Anglo promissory notes?
- What now of Ireland's 'special case' and what are the chances of having some/all of this debt being repudiated/renegotiated?