Debt deal receives mixed reaction on the Southside

LAST week’s momentous debt deal will deliver a significant boost to Ireland’s economic future, Deputy Mary Mitchell O’ Connor (FG) declared on Friday.

Deputy O’Connor said the deal agreed by the Government to ease the debt burden on the Irish people from the Anglo promissory notes was a hugely significant step forward in our economic recovery.

“Thanks to the savings delivered as part of the deal, the budgetary adjustment needed for next year will be e1 billion less,

? she said.

“Furthermore, we will have to borrow e20 billion less on the international markets over the next decade as a result of this deal.

“This will have a major impact on our long-term economic sustainability and our prospects for growth and job creation.

?

Deputy O’ Connor added that a number of important elements of the deal would help economic growth and recovery.

“We are stretching the period to repay the loans over 40 years, and the first principal payment won’t be made until 2038,

? she pointed out.

“The interest rate on the new bonds is also crucial. The average interest rate will be just over three per cent, compared with a punitive rate of well over eight per cent on the promissory notes.

“This interest rate cut will have an impact on Irish taxpayers in the short-term; it means we will have to make budgetary adjustments in the coming years that are e1 billion less than previously set out. That’s

?¬1 billion less in taxes and cuts.

?

However, Richard Boyd Barrett of the People Before Profit party described the deal as

“another Government attempt to hoodwink the people

?.

“Cruel cuts and austerity will continue for years to pay Anglo’s debts,

? he stated.

“The Government’s presentation of the promissory note deal was an attempt to hoodwink the Irish people and will ensure that cuts and austerity will continue to be imposed on ordinary Irish citizens for years to come to pay Anglo’s gambling debts.

?