IMF & EU profits $13 billion from Ireland’s economic woes

Minister confirms huge profit margins for bail-out brokers

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Minister for Finance Michael Noonan

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The International Monetary Fund and the European Union stand to make a staggering $13 billion profit on Ireland’s economic woes.

The incredible figure has emerged as the Bail-Out Boys arrived in Dublin to take stock of Ireland’s attempts to adhere to the conditions of the IMF-EU deal.

Finance Minister Michael Noonan has confirmed for the first time that the international agencies will clear a whopping $13billion in profit if the full $122billion bail-out is drawn down.

“The total margin applying under existing arrangements could be of the order of $13billion (€9bn) over the period,” confirmed Minister Noonan.

He also admitted there is still no sign of any reduction in the interest rate charged to Ireland as the French continue to demand changes in the Irish corporation tax rate.

Noonan made the figures public as officials from both the IMF and the EU began to scour the government’s books.

The Finance chief also revealed that the British government is entitled to send auditors and accountants here to scan the nation accounts as a condition of its $5.6billion loan to Ireland.

The British government has also retained the right to demand all its money back in sterling with immediate effect if Ireland opts out of the Euro.

The IMF-EU bailout team is set for talks with Noonan and his officials in the coming days to discuss progress on public sector reform and government spending cuts.

Minister Noonan has again confirmed that he will have to slash almost $6billion from government spending next year to meet the demands of the IMF-EU deal.

That’s above the expected $5.6billion cuts expected after demands from the bail-out bosses to reduce the national deficit to 8.6pc of gross domestic product in 2012.

“On the review due to take place next week, we have not signaled any major items for renegotiation,” added the Fine Gael Minister.

“However, during the quarter in the run-up to the budget there will be items for renegotiation because the manner in which we will make the correction in the budget may not accord with what is in the memorandum of understanding.

“As long as our approach is fiscally neutral, we will be in a position to substitute one measure for another.”

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