“The agreement significantly cuts the Irish sovereign’s funding requirement. The government estimates it will have to borrow less than €1bn a year to service the interest on the new government bonds, compared with payments of over €3bn annually on the promissory notes. It also simplifies the complex and opaque arrangements including ELA loans parallel with the promissory notes that have been in place since the financial crisis.”
“The Irish government estimates the interest saved on the new government bonds compared with the promissory notes to be worth about €1.1bn in 2013, €0.9bn in 2014, and €0.7bn in 2015. In 2013, the savings are cancelled out by the estimated costs of liquidating IBRC, but in both 2014 and 2015, the result should be to lower the government’s budget deficit by 0.6% of GDP.”
Which is all a bit ritch.