Tuesday, November 23, 2010

Economics 23/11/10: How much will Government need to borrow in 2011

So we topped the European chart again today:
And a quick one for the start of the day tomorrow:

Let's do some arithmetic again:
Leni's Proposition 2: Through 2011 IRL Gov will need
  • €18bn in deficit financing +
  • €30-40bn in deposits shoring +
  • €15bn in banks capital (note - some this can be spread over couple of years)+
  • Banks losses cover of, say, another €10bn =
  • Grand Total of 73-83bn.
Check: is that right, Leni? No answer so far... oh, well... we did the sums, as he asked.


Anonymous said...

Constatine what's your view on likely default or debt restructuring. Surely it will be required.


Anonymous said...

What are your views on sovereign default or debt restructuring. Surely we will have to do this to get out of this problem. The IMF money is too short term and very expensive


Frank said...

Was it absolutely necessary for the cut in the minimum wage? Were there not other options there?