Highlights: Prime Minister Cowen announces Irish bailout

DUBLIN (BestGrowthStock) – Following are highlights from Irish Prime Minister Brian Cowen’s announcement of a bailout loan package agreed with the IMF and European Union.

For highlights of the plan itself, click on [nLDE6AR0GD]

PRIME MINISTER BRIAN COWEN, ANNOUNCING PLAN:

“This agreement is necessary for our country and our people. “The final agreed programme represents the best available deal for Ireland.

“Significant loans being provided to Ireland are necessary to allow us to fund our budgets over the coming years.”

“These loans will provide money that we had already planned to borrow on the international markets. That funding will now be available to Ireland at a cheaper interest rate than if we borrowed on those markets.” “Crucially for Irish jobs, the agreed programme does not involve any change to our corporation tax rate of 12.5 percent.”

“The government estimates that the debt ratio will stabilize in 2013 and that interest payments will represent over 20 percent of tax revenues in 2014.”

WILL DEBT OF SENIOR BONDHOLDERS OF IRISH BANKS BE RESTRUCTURED?

“In relation to the question of senior bondholders, there is no agreement from the European Union for such a proposal because of the impact we believe it would have in relation the stability of the entire financial system itself and the impact it would have across European banking generally.”

REQUIREMENT TO CONSULT IMF/EU TO CHANGE 4-YEAR AUSTERITY PLAN:

“If there are governments in the future in Ireland who want to look at this (the four-year fiscal plan), they would have to consult with the IMF and the European Commission to indicate what changes they were suggesting

“We have to implement what we say we are going to implement and it is on that basis that our funding arrangements with them proceed.”

ON FUTURE PLANS TO BORROW ON MARKETS:KEVIN CARDIFF, SECRETARY GENERAL, DEPARTMENT OF FINANCE:

“There’s no prohibition in any part of this programme on government bond issuance…There is also no prohibition on issuance into the short term market either. There is no particular reason to expect that we’ll be fully reliant on this facility over the programme period.

COWEN REJECTS DEFAULT: “This question of default, I want to make it clear, this country has an obligation and is in a position to pay its debts.

“The idea that there are no costs in default: it would first of all have a huge problem on the euro currency system right across the board in terms of the whole European banking system.”

“We are not an irresponsible country, we are a country that recognizes its international obligations as a member of the Euro area.”

(Dublin newsroom)

Highlights: Prime Minister Cowen announces Irish bailout