UK to offer £7bn loan to Eire

[taxman]

I'm confused.

 

I thought we were destitute, hence the imminent VAT rise, the increase in National Insurance, the cuts to police numbers, the withdrawal of the Forgemasters loan, the ending of the schools building program, the public sector cuts, the benefit cuts, the cuts to schools sports etc etc etc

 

So behind which settee has £7bn been found to help out The Republic of Ireland?

 

I'm not saying there shouldn't be help from UK and others but I thought we were skint. If we aren't, if we can mysteriously conjure up £7bn, then maybe we don't need the tax rises and the spending cuts after all.

[alchemist]

The claim of being skint was only a ruse the condems used to allow them to screw the poor

[GrannyGranny]

Thing is the Irish economy is linked to our economy.

 

There is a huge amount of trade between the 2 countries and if their economy and banking system goes into meltdown it will affect the UK. Same with the other Euro states. Its in all their interests to bail the Irish out and attempt to stabilise the country.

[alchresearch]

BBC 4 said we do more trade with Ireland than with Russia, China and somewhere else combined.

[Greybeard]

 

I'm not saying there shouldn't be help from UK and others but I thought we were skint. If we aren't, if we can mysteriously conjure up £7bn, then maybe we don't need the tax rises and the spending cuts after all.

 

I imagine the BoE are going to print it or the govt. are going to borrow it.

 

Either way we will have to pay for it. Perhaps if the banks paid back some of the money we lent them it wouldn't be a problem.

 

Portugal is next on the money market's hit list...we likely have to offer help there too.

[ricgem2002]

so the condems are going to do what labour did and borrow more money(seeing as the pot was empty) when they arrived ?

[truman]

BBC 4 said we do more trade with Ireland than with Russia, China and somewhere else combined.

 

India and Brazil I think it was...

[Nagel]

So we lend low interest rate money to Ireland and get it paid back at a higher rate of interest. It's good business isn't it?

 

This from Robert Peston - http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/11/hl_ireland_an_extreme_version.html

 

"Over the past 24 hours, I have been asked countless times how the UK government can afford to provide around £7bn of support for Ireland - through indirect and possible direct loans - at a time when it is struggling to reduce its own deficit.

 

Well the answer, as many of you will know, is that unlike Ireland, the UK is currently having little difficulty borrowing record amounts at comparatively miniscule rates of interest.

 

If the UK were to lend to Ireland for three years at an interest rate of 5% or more, which seems likely, that - in theory - would yield a profitable turn for the UK exchequer of perhaps 3 percentage points (or 300 basis points, in the jargon)."

[dell12]

So we lend low interest rate money to Ireland and get it paid back at a higher rate of interest. It's good business isn't it?

 

This from Robert Peston - http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/11/hl_ireland_an_extreme_version.html

 

"Over the past 24 hours, I have been asked countless times how the UK government can afford to provide around £7bn of support for Ireland - through indirect and possible direct loans - at a time when it is struggling to reduce its own deficit.

 

Well the answer, as many of you will know, is that unlike Ireland, the UK is currently having little difficulty borrowing record amounts at comparatively miniscule rates of interest.

 

If the UK were to lend to Ireland for three years at an interest rate of 5% or more, which seems likely, that - in theory - would yield a profitable turn for the UK exchequer of perhaps 3 percentage points (or 300 basis points, in the jargon)."

 

It hardly seems fair when the reason given for slashing services is that we're in too much debt to provide them.

[dell12]

BBC 4 said we do more trade with Ireland than with Russia, China and somewhere else combined.

 

6% apparently.