Troika Considering Changing Irish Bailout Terms, RTE Says
The Spanish precedent is indeed spreading, and as noted here previously a week ago, the Irish demand to get equitable treatment may be about to be granted:
- TROIKA CONSIDERS CHANGING IRISH BAILOUT TERMS, RTE SAYS
- BROADCASTER RTE DOESN'T CITE SOURCES FOR BAILOUT REPORT
So most likely just a trial balloon to see the European response. But why not? What is the downside: Europe blinked and now it is up to the peripherals to demand the same. Next up: Portugal, Greece (again), and again... Spain. And so on, until the socialist utopia finally does run out of other people's money.
The Troika is considering making big changes to the terms of Ireland's bailout as part of a concerted effort to organise the country's return to the markets, RTÉ News has learned.
The changes would focus on extending the repayment schedule of Ireland's bailout loans.
At present Ireland's loans to the EU are an average of 15 years long.
The Troika believes the country has been sticking to its bailout targets and its cost of borrowing would be lower were it not for the worsening of the euro zone crisis.
In an effort to secure a return of Ireland to the markets, sources say the Troika is considering adjusting the terms of the country's repayments. Instead of paying back EU loans over an average of 15 years it is considering extending them to 30 years.
The issue has not yet been raised with the Irish Government or with EU leaders.
The move would amount to Ireland's official creditors taking some pain and would require political agreement.
However, Troika sources say the step is being considered in an effort to convince the markets that private sector bondholders would not be burned in future by Ireland.