Troika considering extending terms of Irish loan … -loan.html

getting quoted on the wires too

Wonder what way this will work in terms of interest? Will it be like turning a 15yr mortage into a 30yr one?

Please god it wont affect the deficit targets in any way, if they starting extending them I give up.

Thats grand so, instead of the kids having to deal with it let’s extend it out to the grandkids as well with no real plan to pay down principal so kicked down the road 3 generations at least. A fine phyrric victory for Noonan et al., the bondholders will be grand and happy, the ECB the same, and Paddy will have enough to buy a pint with the social, a great way to allow the defecit a bit more time to sort itself out (i.e. wait for transactional tax recovery). Mighty stuff altogether!

it’s since been denied though…

Is that an official denial? If so, is it true?

Seems the Irish custom of ’ kicking the can down the road ’ contagion has spread to the Troika :imp:

Don’t know why they bother, they wont get it back anyway.

i dont understand how extending an insolvent country{s repayment period would reassure investors to buy into new Irish paper. I mean if u cant the bloody debt u have already how the hell are u going to pay the new debt?

Because repaying €100 now is a lot harder than repaying €100 in 30 years.

If they is no or only minor changes to the interest rate then the real NPV of the debt will be lower.

But isnt that what the system has always been based on? Money itself is a form of debt under the fractional reserve system. The only point of relevance here is whether ‘confidence’ can be maintained in the viability of said system. You could argue that many countries have been effectively insolvent for years now and that its simply the development of the recent lack of confidence in the banking system which has caused it to have any effect in real terms.

So, essentially, they can extend until kingdom come (if confidence in the system can be restored)…of course, you, I and all the other true believing ‘capitalists’ around here will be the ones to pay for it and will spend the rest of our lives on the wage slave threadmill as a result (and be charged fees and higher taxes for the privilege).