Saturday, July 23, 2011

How much has Britain committed to Ireland? €9.9 Billion?

Here is a table (link to source) showing how the initial Irish Bailout was made up:

Source of Financing Amount
Irish Resources from the National Pension Reserve Fund 17.5 bn €
IMF 22.5 bn €
EFSM 22.5 bn €
EFSF 17.7 bn €
Bilateral Loan UK 3.8 bn €
Bilateral Loan Sweden 0.6 bn €
Bilateral Loan Denmark 0.4 bn €
Total 85.0 bn €

Given that as a rule of thumb Britain contributes approximately 4% to IMF expenditures, and that Britain's share of the total  €60 billion EFSM is expected to cost Britain a mere €7.5 billion, read here, (or €5.5 billion here), then we can deduce the following for Ireland from the UK:

Bilateral Loan € 3.8 billion ( Interest rate reduced by about 2% yesterday).

IMF                 €0.9 Billion

EFSM             €2.8 Billion (or €2.1 billion on the lower 5.5 billion EFSM cost)

RBS to BoI     €1.7 Billion  (Assuming taxpayer losses of only 58% of the €2.9 paid)

Grand Total    €9.2 Billion

Quite a price for Britain's taxpayers!

N.B. Update 24/7/11 7:00 am. -The assumption that taxpayers own 58% of RBS was based on out of date information. It is apparently 83%, see here, the taxpayer share of the €2.9 billion advanced to the Bank of Ireland by RBS, to prevent nationalisation by Ireland, is an actual further charge of €2.4 billion, leaving the true total to €9.9 billion.  That is about £8.8 billion of British taxpayer liability all agreed without benefit of being either budgeted by, or voted for, in our Parliament.



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