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THE COST OF Ireland’s bailout borrowings is set to rise in the coming months, after the ratings agency Standard & Poor’s downgraded the European Union’s financial rescue vehicle which provides cash to the Irish government.
The European Financial Stability Facility (EFSF) – which is providing one third of Ireland’s €67.5 billion bailout – has lost its AAA rating, being downgraded to AA+ by the ratings agency.
The downgrade of the EFSF had been widely expected after France – the second-largest provider of funds to the bailout pot – suffered a similar downgrade last Friday.
S&P explained:
Following the lowering of the ratings on France and Austria, the rated long-term debt instruments already issued by the EFSF are no longer fully supported by guarantees from the EFSF guarantor members rated ‘AAA’ by Standard & Poor’s, or ‘AAA’ rated liquid securities. Instead, they are now covered by guarantees from guarantor members or securities rated ‘AAA’ or ‘AA+’.
The EFSF has been given a ‘developing’ outlook by S&P – an unusual status indicating that the AAA rating could be restored if “additional credit enhancements are put in place”.
It also indicates that the rating could be further lowered if S&P concludes that the creditworthiness of eurozone member states – who collectively fund the EFSF – is reduced.
The EFSF itself responded by insisting the downgrade would not reduce its lending capacity, and that it had the means to fulfil all of its commitments until it was replaced by the European Stability Mechanism later this year.
“EFSF has become a well-established signature in the supranational bond market. It can rely on an investor base which is well diversified in terms of both geographical region and investor type,” it said in a statement.
The downgrade is bad news for Ireland, as the loss of the AAA rating will probably mean the EFSF will have to pay higher interest rates when it borrows on the open markets – cash it then lends on to Ireland at a small margin.
The interest rate Ireland pays on its EFSF borrowing was cut significantly last year, with the EFSF commanding virtually no premium on the loans it secures for us – meaning any higher interest rates the EFSF faces would almost immediately be passed on to Ireland.
The downgrade is also a further blow to the credibility of the EU’s attempt to draw a line under its debt crisis: the bailout fund, which itself was purpose-built to assist weaker countries in getting back to the markets, now itself risks being frozen out of the same markets.
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Schools are more and more being asked to do things which are actually the parent’s job.
@sean o’dhubhghaill: a lot of what you learn in secondary school is not actually pertinent to real life. This is, so what is the harm in it being thought at home and in school?
@A$AP Ragnick: Looks like we’ll have a lot of hygienic, nice and socially conscious people who are academically inept.
@Elrond Rivendell: your right, because it’s impossible to introduce one new module, and the only way to do so would be to eliminate every other subject from the school curriculum so it can be thought 8 hours a day. Silly me.
@A$AP Ragnick: Crikey! Well if your writing is anything to go by, wellbeing and hygiene we’re definitely taught over grammar in your place. To address your substantive point, the original point was that schools are teaching a lot of things that should be taught at home. Your response was along the lines of yeah grand because a lot of things on the curriculum are useless. Wellbeing already gets 100 hours more than English, Irish or Maths and 200 hours more than Science, History, Business, Geography, Languages or any practical subjects at Junior Cycle. I think the evidence that we are developing a lot of people who are well versed in hygiene, mental health, social consciousness and such over academically able students is evidenced by the emphasis in the Junior Cycle programme.
@Elrond Rivendell: **were** being taught. Damn auto-correct. Laughing at the irony myself here!
Well done Helen McEntee, this initiative long overdue
Thank you Helen McEntee.
I’m heartened to hear this.
Domestic abuse inflicted by woman on men is a hidden tragedy in this country.
Helen McEntee would make a fantastic Taoiseach.
@Darren: you’d make a much better comedian
@Graham Manning: and you what would you make ?
@Margaret Mcgarry: Listen listen, Graham is one of these “all politicians are dopes and on the take” people. The barstool expert who spouts opinions online that in the days before the internet were only heard at the bar or on the street corner but because he publishes it online, it now becomes fact. Don’t let him bother you.
@Margaret Mcgarry: An English teacher. Want a grind???
@Elrond Rivendell: says the person convinced introducing this will make students academically inept???
Excellent news!
I like this Helen McEntee.
About time, I feel so ashamed and guilty about being a man, especially a straight, white man.
We need to make sure none of our boys grow up with self respect and confidence.
Critical race theory is hopefully next.
Our schools need third wave feminism urgently before even more of our children get brainwashed by the patriarchy to believe that men and fathers deserve the same rights and respect as women and mothers.
@Dan Broderick: It was inevitable that someone would have a spectacularly bad take on this. Congrats on hitting every buzz word on the “woke madness” bingo card while somehow suggesting that teaching people about consent negatively impacts their confidence. Thankfully, it’s a dying breed that yearns for the good old days when men were men, wha?
@OnlyHereForTheComments: Misogyny was mentiined twice in the closing paragraph. This shows the true meaning behind the story, this isn’t about equality, this is more ignorant man hating nonsense.
Real men are a dying breed and the anti male agenda isn’t even hidden anymore…..nothing more pathetic, dangerous and repulsive to women as a male feminist
@Dan Broderick: “real men are a dying breed” Lol. Upset that the story mentioned misogyny? The fragility is strong with you.
Speaking at the launch, the Taoiseach said that misogyny has “no place” in Irish society.
I agree but what about Misandry or is that still acceptable in society?? It does exist also, in fact one could argue that the taoiseachs statement could be construed as such? He should have said theres no place for misanthropy – at least thats non-biased.
Teaching both sexes to respect each other covers most scenarios. Parents who allow their young 10-12 year old kids and teenagers to roam around committing anti social behaviour need to cop on . When they get away with it that young it emboldens them do worse as they get older. Why should the teachers be landed with the parents responsibility’s.
have your say