‘Ransom note’: Ireland bailout boosts banks, enrages taxpayers 

WHAT: A bailout agreement was reached to save Ireland’s dire financial state, but while it boosted bank stocks, it outraged many hard-pressed taxpayers, who questioned why the government’s pension reserves must be ravaged as part of a deal that burdens the whole country with the mistakes of the rich elite. “This is not a rescue plan. It is the longest ransom note in history: Do what we tell you and you may, in time, get your country back,” said Fintan O’Toole, a commentator and author.

HOW: Many are shocked by a key condition of the rescue, that the government must use $22.9 billion of its own cash and pension reserves to shore up its public finances. Economists warned that the EU-IMF credit line’s average interest rate of 5.8 percent would be too high to repay. They also questioned why senior bondholders of Ireland’s struggling banks — chiefly other banks in Britain, Germany and the U.S. — still were not being asked to bear some costs.

About The Author

Staff Report

Staff Report

Bio:
A daily newspaper covering San Francisco, San Mateo County and serving Alameda, Marin and Santa Clara counties.
Pin It
Favorite

More by Staff Report

Sunday, Jul 24, 2016

Videos

Most Popular Stories

© 2016 The San Francisco Examiner

Website powered by Foundation