The National Debt


#501

Note from Yogans link.

Estimated net outturn to the State from banking stabilisation
measures as at end-2018 €41.7bn
Estimated long-term recurring annual cost of servicing the debt €1.1 billion to €1.3 billion a year

That means each and every year forever as we are not able to €0 the debt off.

Range assuming interest rates of 2.5% to 3.0% per year; actual cost will be determined by the
amount realised from remaining investments and by State’s cost of borrowing.

On a good day (not today) we might get €10bn for our banks shares if we sold them, But that still leaves us paying €800-900m a year in interest, forever and ever and ever and ever more. :frowning:

Put another way, every working taxpayer now pays at least €50 a year simply for the privilege of owning these turds, no matter whether we sell them off or not. :frowning:


#502

It’s funny that on the weekend of the guarantee, Sidewinder and I reckoned the cost of the bank guarantee would be about 47bn, given the turd-assets the banks had, international comparisons, and inevitable outcomes.

If you add in what shareholders &c lost, 47bn seems quite close.

Still, no-one could have predicted it, and that’s the funny bit…


#503

https://www.esr.ie/article/view/1253

Have Irish Sovereign Bonds Decoupled from the Euro Area Periphery, and Why?


#504

Ah Jayis lads, I made that ‘decoupling’ point months ago. Furthermore we have recoupled with Germany if anything.