Irish Economy Thread

[odlum833]

Irish IOU Deal Just 'Weeks' Away

A deal to lessen the burden Ireland faces in paying down €31 billion ($41 billion) in promissory notes, or IOUs, the Irish government has pledged for broken banks such as Anglo Irish Bank Corp., will be struck "in the next few weeks", providing a major boost for the country to emerge from its bailout and regain market funding, a senior Irish government minister said Thursday.

In an interview with The Wall Street Journal, Communications Minister Pat Rabbitte said that some sort of restructure will be agreed with the country's bailout lenders before the next annual repayment of the IOUs falls due next month.

Since last September, the Irish government has been seeking to restructure the IOUs in agreement with the country's lenders—the European Union, International Monetary Fund and the European Central Bank.

The promissory notes were injected into Anglo Irish and Irish Nationwide Building Society, now renamed the Irish Bank Resolution Corp., over two years ago, as a way of keeping the dud banks from immediate collapse.

"They [the IOU notes] are hugely important. It is a huge yearly budgetary factor for ten years that we are required to come up with €3.1 billion in terms of repaying the arrangement put in place by the promissory notes. And a restructuring of that it seems to me is absolutely critical," Mr. Rabbitte said.

Mr. Rabbitte is a senior member of the governing Labour party in the Irish coalition government that swept to power almost a year ago. The coalition had pledged to renegotiate the cost of Ireland's bailout and steer the country back to market funding.

He said he expected the restructure to be concluded by next month, freeing the government from paying an instalment of €3.1 billion.

"A lot of work has gone into it. [Irish Finance Minister] Michael Noonan has invested a lot of work in it. The signs are propitious," he said, without specifying what those signs were.

"There are reasons to be optimistic that the Irish government does not have to pump in another €3.1 billion."

He said it was impossible at this time to say how the restructure will take place.

"You certainly are going to have an arrangement like a mortgage. I hope it will be restructured over 30 or 40 years. We will see. There are a number of different angles that are being pressed for many months now," he said.

"Obviously, if a couple of payments were skipped it would be very helpful in the straitened circumstances in which we find ourselves. All of that is to play for," said Mr. Rabbitte.

He said that the test of the bailout program will be Ireland regaining market funding. "The whole point of being on a support program is market access. Our objective is to get back to the markets as early as may be," he said.

But Mr. Rabbitte said the euro crisis had slowed Irish economic growth. "It is a big ask," he said. "There is a big mountain to climb. The growth that the economy demonstrated in two quarters last year sharply abated as a result of the crisis in the euro."

"There is no doubt that the difficulties that surrounded the euro and the slow cycle race to resolve it has been problematic and has had a serious impact here. So, a great deal depends on stabilization of the euro," he added.


http://online.wsj.com/article/SB1000...googlenews_wsj

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[ilyan]

Originally Posted by thebig C

Hey Ilyan Hope its not too cold in Minsk??!!

Hey Thebig!!! We are simple the North pole especially comparing with Ireland.

Originally Posted by thebig C

1) What exactly do you mean by "basement of Irish export"?

I mean that you export zinc and lead, meat and other food put together large part of your export

Do you produce any household equipment like waching machines, refrigirators, vacuum cleaners? Some years ago you produce kettles and iron Braun.

Structure of your economy reminds me Estonia the country with the highest level of life of former USSR.

[JD47]

Maybe we will see new American company's open in Ireland soon.
Enda Kenny made a good speech.

[odlum833]

Bond yields continued their overall fall today


2 yr is at 4.3%


5 yr is at 5.2%


9 yr is at 6.9%

[Catmalojin]

Govt promises 100,000 new jobs by 2016
Updated: 19:27, Monday, 13 February 2012


Taoiseach, Tánaiste and Minister for Jobs launching jobs plan this afternoon.

The Government has launched an ambitious jobs plan that aims to create 100,000 new positions by 2016 and a further 100,000 by 2020.

Taoiseach Enda Kenny, Tánaiste Eamon Gilmore and Minister for Enterprise Richard Bruton launched the plan in Dublin this afternoon.

The full programme includes a total of 270 measures to be delivered this year in 15 Government Departments and 36 State agencies.

The process will be policed by a monitoring committee of three Departments with think-tank Forfás.

In an effort to address the difficulties small companies face accessing credit, the State is to guarantee 75% of loans to small and medium businesses.

That measure is expected to be operational by the second quarter of this year.

The plan will include a Development Capital Scheme for companies with prospects of jobs and export growth. It will be backed by €50m State investment, which is expected to leverage up to €100m.

A new Micro Finance Fund will supply investment in small companies seeking less than €25,000. The fund will be €10m every year for ten years. The European Investment Bank will supply some of the equity.

The plan proposes a finders' fee of "up to €4,000" for people of Irish extraction abroad who succeed in bringing major job projects to Ireland.

The Taoiseach said that people who wanted to introduce a business would contact an appointed operator. The new company would have to be one that is not already working with the IDA.

There will also be a facility for the diaspora to contribute to investment in new enterprises, which is modelled on a similar scheme in Israel.

The plan includes steps to encourage more mobile international entrepreneurs to start businesses in Ireland through a €10m State fund for investment in start-ups, improvement in immigration arrangements, a targeted marketing campaign and greater use of the IDA network.

A Strategic Investment Fund will match private sector investment with money from the National Pension Reserve Fund. The NPRF will commit €250m and a further €1bn will be sought from institutional investors in Ireland and overseas for infrastructural investment.

A corporation tax exemption will be extended for start up companies until 2014.

Lobby group ISME has said in the past that many firms, due to their size, did not qualify for support from enterprise boards, local authorities or Enterprise Ireland.

Today's plan seeks to address that shortcoming by establishing a "one-stop shop" for firms.

City and country enterprise boards will be dissolved and a new unit will be created in Enterprise Ireland that will work with local authorities in aiding firms.

The Government will establish a health innovation hub to encourage transforming new technologies in health and life sciences into commercial enterprises.

In terms of technology investment, a team will be established to drive the growth of digital gaming, which Ministers hope will double its number of jobs in two years.

The Government also states its intention to support an "enterprise-led International Digital Services Centre" with the aim of centralising digital companies in Ireland.

There are also plans to create a Cloud Computing Strategy for the Public Service and establish of a research centre in cloud computing.

The Taoiseach rejected a suggestion that this was the fourth time the Irish people had heard such promises.

Mr Kenny said: "The jobs budget announced last year was different. Today is the action plan on jobs."

Mr Gilmore also defended the plan, saying it is not just about one big idea "it is about working every day in every area of Government".

Story from RTÉ News:
http://www.rte.ie/news/2012/0213/jobs.html

...

[JD47]

I highly doubt they will create 100,000 jobs by 2016.
I say it will turn out to be another broken promise.

[Catmalojin]

State wins concessions from troika over assets sell-off

STEPHEN COLLINS, Political Editor, CAROLINE MADDEN and SIMON CARSWELL

Wed, Feb 15, 2012

THE GOVERNMENT has secured concessions from the troika that some proceeds from an “ambitious” programme of State asset sales will be reinvested in the economy and not just used to pay down debts.

At the most recent review of the bailout last month, the Government had said it had managed to negotiate with the troika that the proceeds from the sale of State assets would go towards job promotion, but the European Commission official refused to confirm whether this was the case.

The latest EU-European Central Bank-International Monetary Fund agreement, however, says that proceeds from the sale of State assets would improve competitiveness in the economy, reduce the State’s financing needs and “provide additional resources for reinvestment in the economy”.

Minister for Public Expenditure and Reform Brendan Howlin is engaging with the troika on the quantum of funds generated by the sale of State assets that can be reinvested. The Minister has said in the past he expects it to be sizeable.

Mr Howlin is bringing forward proposals to the Cabinet on potential assets for sale in the coming weeks.

“This is a step forward, it’s something the Government very much welcomes,” a spokeswoman for the Department of Public Expenditure said.

The updated memorandum of understand with the troika also shows the Government has promised to provide the troika with details of action taken against unemployed people who fail to attend activation interviews with State agencies.

In addition, the Government said its already-tough budget targets would be strengthened if necessary.

A letter signed by Minister for Finance Michael Noonan and governor of the Central Bank Patrick Honohan pointed out that the margin of error in fiscal and economic projections remained high “due mainly, but not exclusively” to international events.

“While we do not envisage that revisions will be needed, we stand ready to take any corrective actions that may become necessary to meet changing circumstances,” it stated.

The Coalition is committed to cuts of €3.8 billion this year and at least €3.5 billion in 2013 to keep on target to reduce the deficit to less than 3 per cent of gross domestic product by 2015. On employment, the Government has pledged to take steps to strengthen activation and training policies to help jobseekers get back to work.

In the area of banking reform, it agreed to prepare a proposal to deal with “Irish Life and Permanent’s vulnerabilities” by the end of this month. This is understood to be a reference to the high level of loss-making loans and heavy external funding requirements at Permanent TSB.

The documents also show the State-run banks sold and ran down €40 billion of loans last year, beating a €34.7 billion target. The two largest banks, Bank of Ireland and Allied Irish Banks, sold almost €15 billion worth of assets at “significantly better prices” than expected during stress tests in March, the Government said.

Damien English, the Fine Gael chairman of the Oireachtas Committee on Jobs, said confirmation that money raised from the sale of State assets would go towards job creation was proof the Government was continuing to successfully renegotiate the bailout deal with the troika.

Introducing the 2012 Finance Bill in the Dáil last night, Mr Noonan said Ireland was recovering from the most severe downturn in the history of the State with crises in both the public finances and the banking system.

He said the outlook was improving with the most recent data from the Central Statistics Office showing that in the first three quarters of last year, gross domestic product increased by 0.7 per cent.

© 2012 The Irish Times

...

[pricemazda]

What's for sale. I can help the Republic out to the tune of a whole tenner? What can I buy?

EDIT: My taxes are already helping the RoI.

[nordisk celt83]

Originally Posted by pricemazda

What's for sale. I can help the Republic out to the tune of a whole tenner? What can I buy?

EDIT: My taxes are already helping the RoI.

Your taxes are helping to give profit making loans to your fifth largest trading partner, and the country from which you recieve your second highest tourist arrivals, and the one that would break your banks if its economy collapsed, so your helping yourself really. Seems like a good deal!!!


My taxes help fund cross-border projects in the United Kingdom, in the hope of improving economic relations with our nearest neighbour.


I'm not a sad twat, so I don't really give a shit!!!

[nordisk celt83]

Originally Posted by Catmalojin

...

I'm still hoping they sell terminal one of Dublin Airport to Ryanair. That would be a nice little earner!!!

[odlum833]

Originally Posted by nordisk celt83

Your taxes are helping to give profit making loans to your fifth largest trading partner, and the country from which you recieve your second highest tourist arrivals, and the one that would break your banks if its economy collapsed, so your helping yourself really. Seems like a good deal!!!


My taxes help fund cross-border projects in the United Kingdom, in the hope of improving economic relations with our nearest neighbour.


I'm not a sad twat, so I don't really give a shit!!!

Well said.

[odlum833]

Originally Posted by pricemazda

What's for sale. I can help the Republic out to the tune of a whole tenner? What can I buy?

EDIT: My taxes are already helping the RoI.

What I find amazing is such a small country means so much in money to the UK. Don't insult those that butter your bread. Our industry is so advanced it shits all over the UK's industry. A few car making jobs in North "no one gives a fuck about"? I would not throw stones from a glass house. You will need help yourselves soon enough and we might be minded to help supply it.

[JD47]

Originally Posted by odlum833

What I find amazing is such a small country means so much in money to the UK. Don't insult those that butter your bread. Our industry is so advanced it shits all over the UK's industry. A few car making jobs in North "no one gives a fuck about"? I would not throw stones from a glass house. You will need help yourselves soon enough and we might be minded to help supply it.

Well said Odlum
If Ireland was to fall then the UK would be fucked.

[odlum833]

The Chinese leader in waiting is coming

Ireland hosts next Chinese leader


Ireland is set to host a three day trade visit of the man who is expected to be the next leader of China, the fastest growing economy in the world.




It is a massive coup for the Irish to be the only European stop-over for Xi Jinping, the Chinese Vice President, who has been in America this week.

The Chinese politician was welcomed to the White House at the start of his tour of the US President Obama.

For the Irish economy, the visit, which begins on Saturday, is a sign of acceptance that it has turned the corner from basket case status of the last couple of years and is open for business once again.

Jamie Smyth of the Financial Times said: "The Irish Government is very hopeful that by getting political engagement with China they could try to attract investment into the country and that is what Ireland is really crying out for."

"Ireland wants to become the gateway for Chinese companies accessing the European Union just as it does for American companies," he said.

Alliance MLA Anna Lo, the first ethnic Chinese person to be elected to Stormont, said the visit is very significant.

She said: "I think it is important when we look at the visit in terms of the historic trade links between China and Ireland.

"Ireland exports a large quantity of goods each year to China and vice versa."

© UTV News

[JD47]

Great news. I hope we can get a few Chinese mega companies in this country.

[Rapter]

He stayed in a hotel, where I'm working this evening, the amount of Garda personnel in there was unbelievable, they even had snipers on the roof, unfortunately I didn't get to see him

[JD47]

Originally Posted by Rapter

He stayed in a hotel, where I'm working this evening, the amount of Garda personnel in there was unbelievable, they even had snipers on the roof, unfortunately I didn't get to see him

That would be cool. What hotel was it mate

[Aaronj09]

Originally Posted by odlum833

Our industry is so advanced it shits all over the UK's industry.

Ireland has impressive industry for such a small country, but don't delude yourself or let your rabid nationalism get in the way of reality. Pricemazdas post was probably just a joke, but dear me, if you lot have an inferiority complex that large that you must defend Ireland so fiercely over one post, something must not be right..

[Rapter]

Originally Posted by JD47

That would be cool. What hotel was it mate

It was Dromoland Castle

[JD47]

Originally Posted by Aaronj09

Ireland has impressive industry for such a small country, but don't delude yourself or let your rabid nationalism get in the way of reality. Pricemazdas post was probably just a joke, but dear me, if you lot have an inferiority complex that large that you must defend Ireland so fiercely over one post, something must not be right..

Things are pretty shit in this country at the moment so it does annoy us when some bloke makes a comment like that on here.
By the way you look pretty fond of us with your profile image being an Irishman of course.