Saturday, November 20, 2010

ECB has 130 billion exposure to Ireland's banks.

A good report on the present status of Ireland's subjugation is here, from which comes this: 

The ECB is worried they can lose the money they have given to the banks — that would be a nightmare," said a source close to the negotiations. The ECB has lent €130bn to the banks, a quarter of its book, while AIB admitted it lost €13bn in deposits this year and Bank of Ireland €10bn.

 The article claims Ireland has retained the right to continue with its12.5 % corporation tax rate, for how long that will be the case remains to be seen! Note this ominous sentence emphasised by the blog editor in the paragraphs below:

An EU source said: "We have realised the corporation tax issue is a casus belli [incident of war] for the Irish. We had something similar with the Greeks who did not want to touch their military spend, among the highest in the EU, so it was not touched."

However, he added that while the rate, at 12.5% the second lowest in the EU, would stay, there were other ways to address the loopholes that anger Berlin in particular because they see companies using them to avoid paying tax in Germany.

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