Whisper it quietly (someone’s buying Irish debt)…

Okay, the interest is not great, but it’s well below the 7% from just before Ireland was forced to take shelter in the not so loving arms of the Troika… Dan O’Brien:

Yesterday’s bond sale served a dual purpose: to test market demand for Irish Government bonds and to reduce the size of the repayments due in January 2014. The latter was considered important because the single repayment of €11.8 billion in two years was unusually large. It would also have taken place just as the Government is scheduled to exit the bailout. Yesterday’s operation lowers the January 2014 hurdle.

A spokesperson for the European Commission in Brussels said the result of the bond auction was “encouraging as it shows increasing confidence among investors in the strong commitment of the Irish authorities to redress the situation and fully implement the EU-IMF programme. The result is particularly positive as the maturity is well beyond the end of the programme.”

Which is good, I suppose. Though Dan adds this little kicker:

Barry Nangle, head of bonds at stockbroking firm Davy, the only Irish dealer of the Government’s bonds, said the “significant majority of investors switching were the Irish domestic banks”.

Well, I suppose charity always starts at home?

Adds: Colm McCarthy is not impressed

  • Skinner

    Sounds a bit like Mr Quinn buying shares in Anglo. Until someone otherwise without an interest piles in there I won’t be convinced that the tanker is turning.

  • It is seen somewhat differently here, Mick …..

    Posted by Happyhippo on 01/26/12 05:05 AM

    “..speaking of ‘Patriot’s ‘ .

    That feature was great on Vincent Browne .

    The issue He was driving at (the Anglo Irish bank) has spiralled further down the gutter ,-with the mass’ having been fleeced of 15,000,000 euro to-day.

    The bankers run all the so opposing(sick-joke-‘IT’ -is) ‘parties!’.
    The entire country is famished & they just paid themselves this .

    Somebody referred to Protestants & Catholics never on same Hymn -sheet other Day.

    That’s ‘just the way the %..00001 want it.Divided and bitching about peanuts conquered :(” …. Posted by terrybee on 01/25/12 08:46 AM

    Its worse than that Terry. We were fleeced for1,250,000,000 Euro to pay the unsecured creditors of a defunct private company. This was done under threat and I quote from Minister Leo Varadkar that “a bomb would go off, not in Frankfurt, but in Dublin “unless these payments were made. This is what the Troika is really like..a bunch of banker thugs who threaten anyone who dares stand in their way. Their only interest in Ireland is to make sure their banker buddies are paid 100% on their reckless loans and then to asset strip the country before it descends into chaos. Another interesting side note is that Anglo Irish Bank won world bank of the year at the 2006 Davos summit. They were actually awarded for their reckless lending because this is the game plan of the banker elites.

    Buying a country with inflated ponzi debt is one thing, running it so survives and provides is something completely different.

  • Mick Fealty
  • cynic2

    Aye…blame the bankers. They made you buy all those houses at 3 x what they were worth. In a country with a small population and lots of land they forced up land prices to astronomic levels

    Now calm down dears. The country is not and will not be ‘destroyed’. You just don’t have the false riches you convinced yourself that you did. You now have to work off that debt and once you do it will all be OK again

  • You now have to work off that debt and once you do it will all be OK again ….. cynic2 26 January 2012 at 1:30 pm

    A debt called in by whom and for what, cynic2? Have the banks no money?

  • jthree

    It’s a maturity extension at a higher coupon to get past the humungous redemption in 2014

    If there was demand they would have issued a new 3yr bond, but there wasn’t so they didn’t.

  • SethS

    Hmm, so bankrupt state supported/owned Irish banks buy Irish state debt. It’s not going to end well is it.

  • Jim Allister is going to suffer serious indigestion. The ‘free state’ isn’t going to go under. It will suffer serious hardship in the two decades to come, but will survive it as a political entity.. Will Norn Iron be around in 2030?

  • BluesJazz

    Will Norn Iron be around in 2030?

    It will, principally because it’s nobody’s child (see Hank Marvin song). although it will be anyone’s guess as to it’s social and economic condition. Perhaps as bad as the Republic’s.
    Anyone under 25 with a decent education should leave, unless they were lucky enough to get a non job civil service post on 35K£££. (including free pension).Stormont are still recruiting!
    otherwise think Moldova.

  • Brian

    “Aye…blame the bankers. They made you buy all those houses at 3 x what they were worth.”

    No, I blame the idiotic decision in 2008 to guarantee all bank debt as sovereign debt. One of the dumbest decisions with long term consequences in the history of governance.

    Anyone who is in massive debt due to their own poor decision making is a separate issue. At least ole Fianna Fail didn’t gaurantee everyone’s debt.